Despite fears of an economic slowdown, the jobs market is still favorable to workers

There are many options for workers looking to find new jobs, despite recent layoffs or slowdowns in hiring in key areas of the economy.

NewsEditor
NewsEditor
07 July 2022 Thursday 18:18
4 Reads
Despite fears of an economic slowdown, the jobs market is still favorable to workers

There are many options for workers looking to find new jobs, despite recent layoffs or slowdowns in hiring in key areas of the economy.

According to the Bureau of Labor Statistics, there were 11.3 millions open jobs at May's end.

Historic lows are being recorded for layoffs. However, the rate at which workers are leaving their jobs is still near historical highs, even though it has fallen slightly since March's peak. Employers are eager to keep the workers they have, as there are nearly two jobs available for every person without a job. Many employers offer raises to retain or attract workers as inflation causes prices and wages to go up.

The May numbers show a slight decline in April's numbers. The largest drops in openings were in goods manufacturing and professional services, but there wasn't much in terms of employers laying off workers.

In May, there were 4.3 million job losses and 6.5 million new hires.

However, there are concerns that the good times may be ending. The rate of inflation is at its highest level since 1994. To combat inflation, the Fed has recently increased its interest rates by nearly 30% in 30 years.

Peloton and Coinbase were among the high-profile companies that experienced rapid growth during the pandemic. They have now announced layoffs or hiring freezes. Employers who lay off employees may see a decrease in the employment market due to soaring interest rates. Analysts insist that there hasn't been a decline in overall labor market, as evidenced by the May numbers.

"If the labor market was to slow down, employers would be less likely to hire new workers and more willing to let them go. We are not seeing any sudden shift in either direction at the moment," said Nick Bunker, Indeed Hiring Lab's director for research. Although clouds can quickly move in and dim the outlook for the US labor markets, for now the sun shines.

Friday will see the release of the Labor Department's June jobs report.

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