Cooldown during the job marketIt’s happening: According to the Labor Department, while job openings fell in June, near-record numbers continued to leave and be hired into new positions. latest Job Openings and Labor Turnover Summary.
Although the number of job openings on June’s labor market was down by 11.3million in May, they were still higher than last year and more than half the amount before the pandemic. There are still approximately 1.8 job openings for each unemployed person, despite the decline.
Meanwhile, workers are continuing to leverage the market and make moves: 6.4 million people were hired into new jobs, and 4.2 million voluntarily quit — leveling off from record highs but still extremely elevated.
Nick Bunker, Director of Economic Research at Indeed Hiring Lab says that the current job market downturn is far from over.
Bunker states that “the labor market is becoming more flexible, but still very tight”. While the outlook for economic expansion may be less optimistic than it was several months ago, Bunker says there is no imminent threat to the labor market.
While people worry about the future job market, many are choosing to quit their current jobs.
Although workers worry more about the future, many are not afraid to quit their jobs. This is 2.8% of those who left work in June.
In June and July, workers’ confidence in finding work decreased slightly compared to May. according to a ZipRecruiter indexThe sentiment was measured across 1,500 individuals. It also revealed an increase in job seekers who think there will be less jobs in six months. There was also a decline in those who said their job search went well, and a slightly higher number of people who felt financial pressure to accept any job offers.
The headlines for big companies in tech and housing, particularly those that experienced Covid-era growth and announcing layoffs or hiring freezes may cause people to be alarmed. rescinded job offersIn recent months.
Bunker admits there are “pockets of the economy, labor market and other turbulence.” But he believes they are for the most part concentrated.
This means that these workers could be quickly hired for new positions. At 5%, the national unemployment rate remained steady. 3.6% in June.
Bunker predicts that Friday’s jobs report will show increased employment and payroll growth. Bunker states that “if you think of changing jobs, it’s still an excellent time”, adding that some job-seekers might be drawn to a particular industry or sector with high employment.strong economic outlook.”
The slowdown in hiring doesn’t necessarily mean a recession.
Contrary to the strong employment numbers, both economists and consumers worry about how economic conditions will affect them. potential recession.
Andrew Flowers is a labor economist with Appcast, and a research director at Recruitonomics. “We have a paradox within our economy due to conflicting signals,” he says.
As an example, unemployment insurance claims have increased in proportion. ticked upIn recent weeks. The Labor Department report shows that layoffs were at an all-time low of 1% for June.
Bunker believes inflation worries are to blame. However, there is no reason for “heightened concern over a recession” yet.
Flowers claims that Flowers’s latest job numbers indicate more of an economic downturn than a recession. Even so, a lower demand for workers might not lead to mass layoffs.
Flowers says, “Should people worry?” Flowers said that right now it was unclear. My message to workers and job seekers is this: It’s unclear whether the economic slowdown will lead to a significant increase in unemployment.
He said, “As the Fed shifts to lower growth (which is their intention), that does not mean we will suddenly have 10% unemployment.”
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