worker demand stay strong This shows that the US labor market remains vibrant even as the Federal Reserve tries to cool the economy by raising interest rates.
The Labor Department reported on Tuesday that vacancies had reached 11.2 million as part of its Monthly Jobs and Turnover Survey (JOLTS).
The survey saw a significant upward revision to June’s projected openings, from 10.7 million to 11 million. The figure hit a record high in March when he surpassed 11.8 million.
Substantial aid during the ups and downs of the pandemic has kept businesses of all sizes viable, households relatively healthy, and led to strong demand for a range of goods and services. There are still few, and employers are being forced to hire in a hurry.
Job openings outnumber unemployed by a factor of 2 to 1.
Transportation, warehousing and utilities saw the largest increase in job openings. Posts in the arts, entertainment and recreation industries surged in a sign of continued recovery. These industries have benefited greatly from the easing of Covid-19 concerns and restrictions.
The state of jobs in the United States
Much better-than-expected job growth in July suggests the labor market is not slowing down despite the Federal Reserve’s efforts to cool the economy.
Several prominent companies have announced layoffs this summer. However, while the overall layoff rate and number of layoffs have remained flat on a month-to-month basis, turnover has increased recently. decreased slightly This shows that workers can quit jobs they are not satisfied with.
But there were some signs of weakness. The study found an estimated 47,000 fewer vacancies in durable goods manufacturing. Some economists say this is not surprising as consumer demand for goods was strong early in the pandemic. But it could also be a sign that financial conditions are tightening as the Fed tries to keep inflation in check.
Economists and bank analysts said the report said the Fed is likely to continue with aggressive rate hikes as central banks seek to undermine the labor market.A supply-constrained economy.
“The job market has remained remarkably resilient to the Federal Reserve’s best efforts to cool down,” said Mark Zandy, chief economist at Moody’s Analytics. “The Fed is desperate for job growth to slow and the unemployment rate to stabilize and even rise a little to keep pressure on wages and prices in check.”
The Labor Department’s July employment report was unexpectedly strong, adding 528,000 jobs. Zandi said the “hot red” JOLTS data will focus more on his August employment data due on Friday.
Demand for labor is particularly pronounced as the economy contracted slightly in the first half of the year based on inflation-adjusted gross domestic product. Despite rising prices, the raw quantity of goods and services exchanged is still substantial, stimulating labor demand.
“Millions of Americans can still find jobs or get better-paying jobs,” said Robert Frick, an economist at the Navy Federal Credit Union. “After high inflation and slowing job growth in the spring, there may be a second wind in economic growth,” he said.
Some commentators say the data on job openings may be somewhat exaggerated, as companies have little incentive to remove listings even if hiring becomes less urgent.
And there are signs that the tide is turning. A survey of more than 100 of his chief financial officers by Deloitte, a consulting and financial advisory firm, showed that nearly all expect a decline in revenues, employment and overall expansion next year. it was done.
Their growth expectations for wages and staffing have declined. They expect annual wage growth of 4.8% and headcount growth of 2.6%. Both are down from 5.3% in the last quarterly survey.
The Federal Reserve (Fed) has also turned its attention to corporate financing, which can affect hiring capacity and decision-making. About 1 in 10 public company chief financial officers find debt financing attractive, down from 9 a year ago to 10.
Still, executives were relatively confident about their business prospects. This reflects that while people in most income brackets continue to spend at high levels, consumers maintain an overall bleak economic outlook.