This is an excellent time to be looking for a job with employers so desperate to woo new hires they are offering a whole range of perks. These companies are also revamping themselves into more work-friendly environments for their existing employees. What that means is both employees and potential hires have plenty of leverage.
Layoffs dropped to record lows this spring. People leaving of their own volition and opening jobs both have hit very close to historical highs. And the good news is that these changes go beyond perks and into wages, which were up a full six percent in April, compared to April 2021. And that year, employees saw a two-decade all-time-high annual increase, according to the Federal Reserve Bank of Atlanta.
The press has been threatening a recession, which brings chills to those who have ever survived one. However, the U.S. labor market just does not fit with an upcoming recession. Now, the Federal Reserve has been raising interest rates to cool the inflation. And President Joe Biden pointed to the impact of the COVID pandemic and the Russian invasion of Ukraine as the primary sources of inflation, but worldwide and not specific to America.
Economic Research Director at the Indeed Hiring Lab Nick Bunker encouraged workers to enjoy “a considerable amount of leverage in the U.S. labor market,” according to CNBC:
‘Workers still have a considerable amount of leverage in the U.S. labor market. [They’re] having their moment in the sun, but some clouds are likely to come along and darken the outlook.’
Senior Economist at the career site Glassdoor Daniel Zhao suggested:
‘It seems things have smoothed out a little bit but are still holding at an extremely high level of employer demand. And even though there have been concerns about a downturn or even a recession, this really doesn’t look like a labor market that’s about to tip into recession.’
In April there were 1.2 million layoffs, which was a record low. Although job growth rocketed to six percent, that has not changed since March 2022. There were 1.9 jobs for each person unemployed in April. Positions open reached 11.4 million by April’s end. And that was down slightly from March with a record-breaking 11.9 million.
Over 4.4 million individuals felt secure enough to leave their current job in April. In March that number was only 25,000 under the record 4.4 million people who left.
Senior Economist at Emsi Burning Glass Layla O’Kane reported the earliest beginnings of wage growth. She said “times are still. good for workers. But they are unlikely to get much better:”
‘Some of the sectors that saw the [swiftest] increases in quitting and wage growth are starting to cool. Times are still good for workers, but they are unlikely to get much better.’
‘The expectation is the labor market will cool down. That’s what the Fed is trying to do — cool down the economy and bring down inflation, and naturally we should expect the labor market to cool down, as well.’
Looks as if the good job statistics belie false claims of a weakening economy.
Featured image is a screenshot via YouTube.
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