All articles tagged with #quits
Despite economic concerns, private sector hiring surged in April with the highest number of hires in a year, and job openings remain high, indicating a strong labor market. Quits decreased, and layoffs remain low, suggesting the pandemic-era labor market churn has slowed to healthier levels.
The global layoff announcements by big companies have led to a stabilization in the labor market, with fewer people quitting their jobs and fewer job openings being left behind. Job openings remain at high levels, while voluntary quits have risen for the second month in a row. Hires have also increased, indicating a still tight employment environment. Layoffs and discharges, though up from pandemic lows, are still lower than pre-pandemic levels. The data, based on surveys of work sites, shows that the labor market has stopped loosening further, with job openings varying by industry.
Despite evidence suggesting that the labor market has stabilized, including a decrease in quits and a labor leverage ratio indicating a willingness to leave jobs for higher pay, other data paints a different picture. Job openings may not be as real as they seem, with analysts suspecting an increase in fake openings during the pandemic. Additionally, wage data from the Atlanta Fed shows that not everyone is keeping up with inflation, and over 100% of the increase in employment since 2020 is attributed to foreign-born workers. The surge in government jobs to handle immigration further challenges the notion of a strong job market, indicating potential underlying weaknesses.
Job openings may be on the rise, but the real story lies in the data of hires, separations, and quits, which reflect the actual events in the labor market. Many job listings are found to be fake, and analysts should not rely solely on job openings as a sign of labor market strength. Quits in key job growth sectors have returned to pre-pandemic levels, and the Labor Leverage Ratio provides a more compelling story of workers' willingness to leave jobs. Additionally, a surge in consumer spending in 2023 is attributed to tax cuts rather than Bidenomics, with consumer credit hitting a record $5 trillion.
The US job market is experiencing a cooling trend, with job openings and voluntary worker departures declining in March, while the layoff rate increased, according to data from the US Bureau of Labor Statistics. However, the job market remains favourable for workers despite the recent cooling trend, with the national unemployment rate at 3.5%, tying for the lowest since 1969. The decline in job openings was most pronounced among small businesses, while the slowdown in voluntary departures was most pronounced in the accommodation and food services sector.