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The US Bureau of Labor Statistics said on Wednesday that on the last day of July, the US economy had a record 10.9 million job vacancies.
Work, work, everywhere.
This is what the latest snapshot of the US labor market tells us. The US Bureau of Labor Statistics (BLS) said on Wednesday that the world’s largest economy had a record 10.9 million job vacancies on the last day of July. This marks an increase of 749,000 vacancies from the previous month-which is also a record.
Approximately 4 million Americans quit their jobs in July, which shows that people are confident in their employment prospects, which is roughly the same as last month.
While this may be good news for workers looking for paid jobs on the sidewalk, it is not necessarily good for the economy as a whole.
Why? Because jobs are only created when someone is actually hired. Strong job creation is a sign of a strong economic recovery.
In August, the US economy added 235,000 jobs—a painful disappointment marking the slowest increase in monthly non-agricultural employment since January.
From February 2020, the economy will still need 5.3 million jobs to return to pre-pandemic levels. And this gap does not even consider the economic or labor growth since then, which means that the gap is deeper than the figures show.
Delta resistance
Many analysts mainly blamed the slowdown in job creation in August on the surge in COVID-19 infections related to the Delta variant of the coronavirus. As evidence, they point out that the leisure and hospitality industries—hotels, restaurants, and other companies engaged in face-to-face customer service—have seen a sharp slowdown in job creation.
The leisure and hotel industry reports that it is difficult to hire enough workers in the summer. Some analysts attribute the increase in the number of jobs to large numbers of companies opening and all competing for the same workers. Other possible reasons cited include the continued lack of childcare services, older workers choosing to retire early, fear of contracting COVID-19, and increased federal unemployment benefits to provide unemployed workers with more breathing space to change their way of earning a living.
Federal job benefits, including the sometimes disputed weekly federal unemployment benefit of $300, expired this week. This will test the claims of politicians and others that federal unemployment benefits are the chief culprit that keeps unemployed workers on the sidelines.
Look to the future
Although the COVID-19 infection is affecting the recovery of the United States, while raw materials and labor are facing bottlenecks, the economic recovery of the United States is still on track.
However, many analysts are lowering their expectations for economic growth.
Gregory Daco, chief U.S. economist at the Oxford Economics Institute, wrote in a report on Wednesday: “Signs that the coronavirus infection may be peaking should prevent the labor market from reversing and ensure consumers Spending will maintain a modest momentum through 2022.” He added that his company has lowered its GDP growth forecast for 2021 by 0.6 percentage points to 5.5%.
Analysts at Goldman Sachs believe that the labor market recovery will remain healthy by the end of this year.
Goldman Sachs wrote in a client report on Wednesday: “Due to the drag of the virus, the August employment report was weaker than expected. After the JOLTS investigation period, labor demand may be gradually weakened as the delta variable spread increases.” BLS investigation. “However, labor demand is still at a very high level, which is one of the reasons why we expect employment will increase significantly in the rest of 2021.”
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