Wages of job offers received by job seekers have spiked, with expectations for wages increasing by 11.8% from a year ago, indicating that inflation is impacting the labor market and fueling concerns about even higher inflation.
US payroll growth in the year through March may have been weaker than originally reported, with estimates suggesting there were 500,000 fewer jobs than previously stated, potentially impacting the Federal Reserve's decision on further rate hikes.
Inflation is causing a decline in affordability for average working individuals, with prices on everyday necessities such as groceries, gasoline, and housing rising significantly in the past two years due to government spending and the Fed's money-printing.
The federal minimum wage is becoming increasingly irrelevant as most workers, even teenagers, are earning well above it, leading to questions about its future significance and impact on workers when the job market cools.
The US Labor Department has revised downward its estimate of total payroll employment in March 2023, revealing a slightly cooler labor market than previously thought, which may influence the Federal Reserve's decision on interest rates at their upcoming policy meeting in September.
The Bank of Canada may shift its focus from the output gap to labor market indicators, such as unemployment and wages, in order to make inflation forecasts and guide its interest rate decisions, according to a report by CIBC economists. The report suggests that the labor market has become a more reliable indicator of excess demand or supply, and forecasts that if the job market outlook suggests it's not necessary, there may be no more rate hikes this year and rate cuts in early 2024.
The Biden administration's Inflation Reduction Act is creating jobs, but the United States is experiencing a shortage of skilled workers, leading business leaders to call for an expansion of work permits for immigrants to fill the workforce gap.
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 number of job vacancies in the US dropped in July, indicating a cooling labor market that could alleviate inflation, while fewer Americans quit their jobs and consumer confidence in the economy decreased, potentially impacting consumer spending; these trends may lead the Federal Reserve to delay a rate hike in September.
The trend of hefty pay increases for new hires is reversing, with the average posted pay for more job titles declining rather than increasing so far this year, according to data from ZipRecruiter, indicating a potential end to a brief golden age of wage growth for job seekers.
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 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.
U.S. job growth likely slowed in August due to factors such as striking actors and a major trucking company bankruptcy, but the unemployment rate is expected to remain low; economists caution against overreacting and advise focusing on long-term trends.
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.
The US job market shows signs of slowing but remains resilient, with 187,000 jobs added in August and a rise in the unemployment rate to 3.8%, as more people actively look for work. Wage gains are easing, signaling a potential slowdown in inflation, and the Federal Reserve may decide against further interest rate hikes.
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.
Cleveland Fed President Loretta Mester said that even though there has been some progress, inflation is still too high and the jobs market remains strong, with the Fed's efforts to bring down inflation helping labor demand and supply to balance.
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.
Walmart is lowering starting wages for some entry-level jobs, indicating a cooling labor market.
The gap between wage growth and inflation is closing, with projections indicating that it may fully close by the fourth quarter of 2024, providing workers with the opportunity to recover from the recent surge in prices; however, wage gains across different industries vary significantly, with sectors like accommodation and food services, leisure and hospitality, and retail experiencing higher wage increases compared to education, finance, construction, and manufacturing.
Inflation has decreased significantly in recent months, but the role of the Federal Reserve in this decline is questionable as there is little evidence to suggest that higher interest rates led to lower prices and curtailed demand or employment. Other factors such as falling energy prices and the healing of disrupted supply chains appear to have had a larger impact on slowing inflation.
Wage gains for job-switchers in the US have dropped to just barely higher than those who stay in their current role, indicating that job-hopping is slowing down as the labor market slows overall.
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.
US inflation has slowed over the past year and wages are not a reliable indicator of future price increases, according to Federal Reserve officials.
American workers are facing a decline in median annual household income due to high inflation, with 17 states experiencing a decrease while only five saw an increase, according to data from the Census Bureau. The labor market remains challenging, with wages rising but not enough to keep up with inflation.
Central banks' efforts to combat inflation by raising interest rates have not led to mass job losses, as labor markets in various countries have cooperated by reducing open vacancies and trimming wage growth, suggesting a possible "soft landing" for the economy without significant casualties.
The job market in the United States has cooled down, with hiring declining for the third consecutive month, and data from LinkedIn shows that various industries are facing unique hiring challenges; however, the information technology industry is expected to see a boost in employment in the fourth quarter. To advance your career, focus on getting noticed by key executives for a positive annual review.
The retail, leisure and hospitality, and accommodation and food services industries experienced wage growth that outpaced inflation due to the high demand and staffing shortages after the pandemic, but there are no guaranteed inflation-proof industries, and it is important for individuals to focus on securing jobs that offer upward mobility and higher income to keep up with inflation.
The number of job layoffs in the U.S. remains near a record low despite rising interest rates and high inflation.