The US has added a solid 850,000 jobs as the economy grows its profits

The US has added a solid 850,000 jobs as the economy grows its profits

WASHINGTON: US employers added 850,000 jobs in June, significantly higher than the average for the past three months and a sign that companies may have an easier time finding enough workers to fill open jobs .
Friday’s report from the Labor Department was the latest evidence that the reopening of the economy is making a powerful rebound from the slowdown of the pandemic. Restaurant traffic across the country has almost returned to pre-pandemic levels, with more people shopping, traveling and attending sports and entertainment events. The number of people flying each day has attained nearly 80% of their pre-Covid-19 levels. And Americans’ confidence in the economic outlook has almost completely recovered.
The result is that many businesses are desperate to get jobs and have posted a record-high number of jobs. As competition for workers intensifies, especially at restaurants and tourist and entertainment venues, employers are offering higher salaries, as well as signing and retention bonuses and more flexible hours. The proportion of job ads that promise bonuses has more than doubled in the past year, employment website Indeed found.
Friday’s report shows the unemployment rate rose from 5.8% in May to 5.9% in June. Despite steady gains from the job market, unemployment remains well above the 3.5% rate it was before the pandemic hit, and the economy remains short of 6.8 million jobs from its pre-pandemic level. Still, unemployment has plummeted to 14.8% in April of last year, right after the coronavirus outbreak and tens of millions of layoffs.
Hiring in June was particularly strong in a category that primarily consisted of restaurants, bars and hotels, which collectively bore the brunt of layoffs from the recession; 343,000 jobs were added in this category. Governments added 188,000 positions, mostly in education. And hiring by retailers accelerated, adding 67,000 jobs.
According to the latest figures from the Labor Department, the number of advertised job openings reached 9.3 million in April, the highest in 20 years of figures. Job postings have grown even more since then, employment website Indeed.
Yet several factors are still limiting the availability of workers. Some people who are out of work are concerned about taking on a service job that will involve face-to-face contact with the public. In addition, about 1.5 million people left the workforce during the pandemic to care for children or other relatives and did not fully return. And about 2.6 million older workers took advantage of increased stock portfolios and home values ​​to retire early.
In June, the proportion of Americans who either have a job or are looking for one – a figure called labor force participation – was unchanged and is well below where it was before the pandemic. For the economy to fully regain its health, that figure will need to rise in the coming months.
But the flat reading on labor force participation primarily reflects a decline in the proportion of adolescents who are either working or looking for a job. In contrast, Americans age 20 and older were more likely to have found or looked for a job in the past month.
A temporary $300-a-week federal unemployment benefit, on top of regular state jobless aid, may enable some people to be more selective in finding and taking jobs. Roughly half of the states plan to stop paying the supplement by the end of July, which supporters say is an effort to motivate the unemployed to look for work. On Thursday, the government said the number of people applying for jobless aid fell to 364,000 last week, the lowest level since the pandemic began.
There are also signs that people are re-evaluating their work and personal lives and are not necessarily interested in returning to their old jobs, especially those that pay modest wages. The proportion of Americans who left their jobs in April rose to its highest level in more than 20 years.
About 6% of workers who are in the industry category, which includes restaurants, hotels, casinos and amusement parks, quit their jobs in April – twice the proportion of workers in all sectors doing so.
The increasing number of people leaving jobs often for high-paying positions means that even employers who are hiring are struggling to maintain adequate staffing levels.
A survey of manufacturers in June found widespread complaints about labor shortages among factory officials. Many said they were experiencing heavy turnover due to what they called ‘wage dynamics’: other companies wooing their employees for higher wages.
The Monster Job Board, which owns Randstad, found that job postings increased 40% from May to June, said Karen Fichuk, chief executive officer of Randstad North America, a recruitment and staffing firm. In contrast, job searches increased by only 4%.
The struggle to fill jobs coincides with a rapidly growing economy. In the first three months of the year, the government estimated the economy to expand at a strong 6.4% annual rate. In the recently ended April-June quarter, the annual rate has reached 10%.
And for the whole of 2021, the Congressional Budget Office projected Thursday that the growth rate would be 6.7%. This would be the fastest calendar-year expansion since 1984.
Meanwhile, consumer confidence rose in June, according to the conference board, and is almost back to its pre-pandemic levels. Americans also seem unimpressed by recent price increases, with the percentage of consumers planning to buy a home, car or major appliance, all rising. Home prices rose the most in 15 years in April.
Factory production is also growing at a healthy pace, partly because companies are investing more in industrial machinery, aircraft and technology. Those investments could make workers more efficient and fuel long-term growth for years to come.

STAY TUNED WITH US FOR MORE INTERESTING CONTENT ONLY ON DESINEW.XYZ

Leave a Reply

Your email address will not be published. Required fields are marked *