Despite attempts by the Federal Reserve to cool the economy and combat inflation, applications for unemployment benefits in the US declined last week, indicating a resilient labor market.
The number of job openings in the US fell to 8.8 million at the end of July, indicating a slowing economy, with declines seen in professional and business services, healthcare, and state and local government sectors, while the information industry and transportation saw increases in job openings. Additionally, consumer confidence dipped in August as Americans grew more concerned about rising prices of gas and groceries, and home prices continued to increase in June.
The US labor market shows signs of easing as job openings decline for the third consecutive month, worker quits decrease, and layoffs increase, indicating a more balanced state, according to the Bureau of Labor Statistics.
U.S. job openings reach lowest level in nearly 2.5 years in July, signaling a slowdown in the labor market and potential impact on interest rates.
The US jobs data for July suggests a cooling employment market, with a drop in labor demand and easing of hiring conditions, which could help lower inflation without a significant rise in unemployment rates.
Job creation in the United States slowed more than expected in August, a sign that the resilient economy might be starting to ease under pressure from higher interest rates.
Private employers in the U.S. added fewer jobs than expected in August, indicating a slowdown in the labor market and suggesting that the rapid job growth seen in recent years is no longer sustainable.
The labor market has experienced a decline in job options and bargaining power for workers, however, some industries such as hospitality and healthcare still offer significant leverage for employees, with the number of resignations surpassing layoffs.
U.S. job growth is slowing down but remains steady, with the unemployment rate settling at 3.5% in July and predictions that the August jobs report will show similar results, although concerns remain regarding potential slowdowns and negative growth.
Job openings and layoffs decreased in July, indicating a return to pre-pandemic labor market patterns, with economists attributing the drop to a decline in turnover rather than contraction.
The August jobs report is highly anticipated as investors assess the health of the labor market amidst rising interest rates and inflation, with projections indicating an increase in hiring and a steady unemployment rate, but potential disruptions from ongoing strikes and bankruptcies could affect the data. The report is closely watched by the Federal Reserve for signs of labor market softening as they grapple with inflation, and while the labor market has remained tight, there are indications of a gradual slowdown. Job openings have decreased, along with resignations, pointing to a labor market that is cooling.
Job creation in the American labor market is expected to slow down in August, with the addition of approximately 170,000 jobs, reflecting a mild cooling of employment growth and wage growth, as well as the impact of higher interest rates on hiring; the recent strikes in the film industry, although not a significant direct employer, are likely to have some impact on the jobs numbers, particularly those related to on-set production and support roles.
As the labor market begins to shift back to normal after the pandemic, job openings are declining and the rate of people quitting jobs is decreasing, indicating a more balanced market, although unemployment is still low and there are still opportunities for skilled workers.
Employers added 187,000 jobs in August, resulting in a modest pickup in the job market, with industries such as health care, hospitality, and construction leading in job growth, while the unemployment rate rose to 3.8% due to more people re-joining the workforce, according to the Labor Department.
The US job market is cooling down, with signs of weakening and a slowdown in momentum, which may allow the Federal Reserve to ease inflation pressure through weaker job creation and reduced demand.
Despite weakening economic growth, the unemployment rate remains low, which is puzzling economists and could lead to a "full-employment stagnation" scenario with a potential recession and low unemployment rates, posing challenges for the Federal Reserve and the overall economy.
British employers have reduced hiring through recruitment agencies at the fastest rate in over three years, reflecting concerns about the economic outlook, according to a survey by the Recruitment and Employment Confederation (REC), which also reported a decline in spending on temporary workers for the first time since July 2020. Starting salaries rose at the slowest pace since March 2021, highlighting the challenge for the Bank of England in managing wage growth and inflation.
The jobs market is currently in a relatively benign position, with unemployment rates and wage growth neither extremely high nor low, but leading indicators suggest a potential rise in unemployment and a continued deceleration of wage growth in the coming quarters.
The number of job layoffs in the U.S. remains near a record low despite rising interest rates and high inflation.
The decline in job openings could have negative implications for the US stock market, as job openings and the S&P 500 have shown a strong correlation since 2001, with job openings currently down 27% from their peak in March 2022.
Despite the Federal Reserve's efforts to lower inflation, the job market remains strong with unemployment rates near historic lows, challenging traditional economic thinking.
Hiring by U.S. companies slowed more than expected in September, reflecting a cooling labor market due to higher interest rates, with the worst month for job creation since January 2021.
U.S. private employers added the fewest workers in more than 2-1/2 years in September, with large establishments shedding jobs, but that likely exaggerates the pace of slowdown in the labor market.
Despite a strong job market, workers' confidence has dropped to its lowest level since 2016, attributed to financial stress and the comparison to the scorching-hot job market in 2021 and 2022.
The American labor market is gradually normalizing, with workers switching to better jobs and the labor market becoming moderately tight, indicating that the previous talk of a skills shortage was exaggerated.
The September employment report, set to be released on October 6th, is expected to show an addition of approximately 170,000 jobs, with economists closely monitoring unemployment and wage growth data. Eric Freedman, Chief Investment Officer at U.S. Bank Asset Management, states that the resilience of the broader economy lies in the labor market, which still faces challenges in finding workers, especially for small businesses.
U.S. job growth is expected to have slowed in September, but the unemployment rate likely decreased from a 1-1/2-year high, indicating the underlying strength of the economy; wage gains are also expected to remain elevated.
The September jobs report shows a robust job market, but rising inflation and slow wage growth are making Americans feel worse about the economy.
Economic change is not accelerating but rather slowing down, and its nature does not necessarily result in older workers losing their jobs, as demonstrated by the decline of teamsters in 19th-century America and the higher employment of older workers in manufacturing in the UK despite a decrease in jobs.
The US job market added fewer jobs than expected in June, indicating a slower rate of growth, but economists suggest that this is a positive sign of a soft landing for the economy.
British employers reduced job vacancies for the first time in over two-and-a-half years in September, signaling a cooling in the labor market, although the decline was marginal and mainly in the public sector.
White-collar professionals are experiencing difficulty finding new jobs and facing job insecurity, while blue-collar and service-sector workers are seeing job growth; the hiring for white-collar roles has slowed down due to specific skill requirements and companies being cautious about a potential recession.
A recent study from Washington University finds that the drop in hours worked during the pandemic is primarily due to workers choosing to work fewer hours rather than dropping out of the labor force, which has led to job openings remaining high and unemployment rates low. This phenomenon, known as "quiet quitting," has been enabled by the shift to hybrid or remote work and has positive implications for work-life balance and productivity.
China's economic recovery has led to a drop in confidence among companies and jobseekers, with some industries becoming more conservative about hiring and senior candidates less willing to change roles, despite the government reporting an overall stable labor market. Recruitment agencies have reported shrinking revenues, although certain sectors such as hospitality, catering, and new energy show potential for job growth. Factors such as the focus on domestic replacement, declining demand in certain industries, and the impact of China's crackdown on private tutoring and the property market have contributed to the challenging job market conditions.
California's employment situation is showing signs of cooling, with a decrease in hiring and an increase in firings, but it is still better than the worst times of the Great Recession and has improved from last year, indicating a relatively stable job market.
Economic activity in most districts remained unchanged since early September, with mixed consumer spending, slight declines in loan demand, and a mixed outlook for the economy, according to the Federal Reserve's Beige Book report. Labor conditions eased with improvements in hiring, but recruiting skilled workers remains a challenge, while wage growth remained moderate. Prices continued to rise, albeit at a slower pace.
Higher costs and declining fee incomes have led to a drop in job vacancies in the UK, with recruiters reporting a 50% increase in applicants per job, signaling a tougher market for businesses and employees alike. The downturn is mainly affecting white-collar workers, such as bankers and coders, as well as high-skilled roles, with sectors like hospitality and retail likely to be further impacted by rising interest rates and the impending increase in the minimum wage.
Workers are no longer quitting their jobs at a higher rate than before the pandemic due to a decline in pay gains for job changers, indicating that job-hopping is not as financially rewarding as it used to be. Furthermore, the percentage of new hires in the labor market has decreased across various industries, suggesting a slowdown in job churn.
Recent layoffs in the tech sector have raised concerns about the job market, but there is evidence that Americans are still spending and businesses are quickly absorbing any job losses, indicating that there is no imminent crisis in the labor market, according to economists. The labor market is cooling from the post-pandemic boom, but it remains strong overall, and the recent layoffs are concentrated in specific sectors. Additionally, the Federal Reserve's high interest rates may slow down hiring, but experts do not expect a significant increase in unemployment or mass layoffs in the near future.