The jobless rate was 3.6 percent, the same as a month earlier, the Labor Department said Friday. Employers have continued to compete for workers in recent months, with initial jobless claims up slightly from their low point in March. However, there is no guarantee that rapid growth will continue indefinitely, as high prices weigh on consumer spending. The workforce remains constrained by aging demographics, low levels of immigration and barriers to work that keep many people on the sidelines. “We weren’t going to continue the employment growth we were seeing — it had to stop,” said Julian Richers, vice president of global economic research at Morgan Stanley. He said it will take some time, however, to exhaust America’s appetite for work. “There is still a great demand for workers,” said Dr. Richers. “It makes sense that as the economy slows down, employment should also slow down, since we’ve been dealing with a build-up in labor demand.” That backlog is evident in the 11.3 million job openings that employers opened in May, a number that remains near a record and leaves nearly two jobs available for every job seeker. In this equation, any workers laid off as some sectors come under pressure will likely find new jobs quickly — at least for a while. But a series of headwinds is creating a time limit on this salesperson’s job market. Business leaders report that while domestic demand remains strong and some supply chain issues have eased, backlogs are no longer growing and savings accounts are shrinking. Whenever possible, employers are automating tasks rather than bringing in new employees. “Employers are becoming less anxious to fill these jobs as they watch the economy slow,” said Bill Adams, chief economist at Comerica Bank. “I would expect that businesses will probably take a long time to fill the open positions before they actually receive advertisements.” There are early signs that some employers are starting to shed workers — either because demand is slacking or because rising interest rates are starving them of capital. Outplacement firm Challenger, Gray & Christmas said Thursday that the number of announced layoffs in June rose 57 percent from the previous month, the highest total since February 2021. The cuts focused on the auto industry, which has been hit by supply shortages and high gasoline prices. Lauren Herring, the CEO of outplacement and coaching firm Impact Group, also has a bullish streak in business. “We feel we may be at a tipping point as the number of affected workers increases throughout the year,” he said. But for now, he managed to quickly find new jobs for most of the laid-off workers. “People still have the sense that the grass is greener and ‘I can still go across the street and get a signing bonus at XYZ Company,’” Ms. Herring said.
title: “June Jobs Report Shows Strong Growth Latest News " ShowToc: true date: “2022-11-24” author: “Doreen Hammons”
The jobless rate was 3.6 percent, the same as a month earlier, the Labor Department said Friday. The number is in line with the average gain in recent months, including 368,000 in April and 384,000 in May. Employers have continued to compete for workers in recent months, with initial jobless claims up slightly from their low point in March. The private sector has now regained its pre-pandemic job numbers, while the public sector remains 664,000 jobs below February 2020. Except for the public sector, no sector lost jobs in June on a seasonally adjusted basis. However, there is no guarantee that rapid growth will continue indefinitely, as high prices weigh on consumer spending. The workforce remains constrained by aging demographics, low levels of immigration and barriers to work that keep many people on the sidelines. “We weren’t going to continue the employment growth we were seeing — it had to stop,” said Julian Richers, vice president of global economic research at Morgan Stanley. He said it will take some time, however, to exhaust America’s appetite for work. “There is still a great demand for workers,” said Dr. Richers. “It makes sense that as the economy slows down, employment should also slow down, since we’ve been dealing with a build-up in labor demand.” That backlog is evident in the 11.3 million job openings that employers opened in May, a number that remains near a record and leaves nearly two jobs available for every job seeker. In this equation, any workers laid off as certain sectors come under pressure are likely to find new jobs quickly — at least for a while. But a series of headwinds is creating a time limit on this salesperson’s job market. Business leaders report that while domestic demand remains strong and some supply chain issues have eased, backlogs are no longer growing and savings accounts are shrinking. Whenever possible, employers are automating tasks rather than bringing in new employees. “Employers are becoming less anxious to fill these jobs as they watch the economy slow,” said Bill Adams, chief economist at Comerica Bank. “I would expect that businesses will probably take a long time to fill the open positions before they actually receive advertisements.”
