Washington — Overall demand for workers remains strong, but US employers have fewer jobs to advertise in May as the economy shows signs of weakening.
According to the Ministry of Labor, employers posted 11.3 million jobs at the end of May, down from about 11.7 million in April. The number of job openings in March reached 11.9 million, the highest level in the record more than 20 years ago. All unemployed have almost two jobs, a big reversal from the historical pattern. Before the pandemic, there was always more work available to the unemployed.
This figure reflects the extraordinary nature of the post-pandemic economy. Inflation is squeezing household budgets, forcing consumers to cut spending and weakening growth. Still, companies are still struggling to add more workers. Demand for travel and entertainment-related services is particularly strong.
Economists are closely monitoring job vacancies for signs that the labor market is chilling and could reduce inflation. Companies list so many job listings that they are offering more profits to raise wages and attract and retain workers. Rising labor costs, in turn, have contributed to rising prices, and inflation is now at its highest level in 40 years.
The Federal Reserve is targeting near-record high levels of job vacancies as evidence of an overheated economy, rapidly moving short-term interest rates managed by the Federal Reserve to cool consumer and corporate spending. I’m pulling it up. Federal Reserve Chair Jerome Powell hopes that lower spending will reduce worker demand, reduce job openings and wage increases, and reduce inflation.
So far, labor demand remains strong. The government announced last month that employers added 390,000 jobs in May. This is a healthy increase, but the unemployment rate was only 3.6%, the lowest level in 50 years.
The report on Wednesday, known as the Jobs and Workers Turnover Survey (JOLTS), provides overall data on recruitment, job advertisements, and the number of people who quit their jobs. On Friday, the government will release a monthly employment report that includes net employment growth and unemployment.
There are signs that employment and labor demand may cool in the coming months. Friday’s June Employment Report is expected to show that employers have added 275,000 jobs. This is a solid increase, but the smallest in over a year.
Homebase, a provider of payroll and recruitment software for small businesses, said June customer adverts for new jobs were down 16% compared to May. According to another survey of 400 clients, most people plan to add jobs this year, but twice as many say they won’t add jobs in June compared to January this year. It is 8%. In addition, the percentage of people planning to add more than 11 workers plummeted from 30% in January to nearly 19%.
Jason Greenberg, Head Economist at Homebase, said:
US jobs remain at a healthy level, but slip-wake-up calls
Source link US jobs remain at a healthy level, but slip-wake-up calls