Washington (AP) — A promising job surge added 850,000 jobs to US employers in June. This is well above the average for the last three months and indicates that it can take some time for a company to find enough workers to fill in the jobs it is looking for.
Friday’s report from the Ministry of Labor was the latest evidence that the economic resumption is driving a strong recovery from the pandemic recession. 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 daily has regained about 80% of pre-COVID-19 levels. And American confidence in the economic outlook has almost completely regained.
The report also suggested that American workers dominate the job market as companies eager to staff in a fast-growing economy hang higher wages. The average hourly wage in June rose steadily to 3.6% compared to a year ago. This is faster than the pre-pandemic annual pace. In addition, the percentage of new employees is increasing and we are working full-time. And the number of part-time workers who prefer full-time work has plummeted — a sign of good health.
“This underscores the growing bargaining power of the workforce,” said Joe Brusuelas, chief economist at tax accountant firm RSM. “As the US economy expands, they are more confident that they will get better jobs at better wages.”
Some employers also offer signature and retention bonuses and more flexible time, especially as workers compete more intensely in restaurants, tourists and entertainment venues. Indeed has found that the percentage of classified ads that promise bonuses has more than doubled over the past year.
The unemployment rate rose from 5.8% in May to 5.9% in June, according to a report on Friday. Despite the steady growth of the employment market, the unemployment rate is well above the 3.5% before the pandemic and the economy maintains 6.8 million jobs, below pre-pandemic levels. I will. Still, the unemployment rate plummeted from 14.8% in April last year, shortly after the coronavirus erupted, causing layoffs for tens of millions.
June recruitment was particularly strong in categories, mainly including restaurants, bars and hotels, and was blamed for layoffs due to the recession. This category has added 343,000 jobs. The government has added 188,000 jobs, primarily in the education sector. Employment by retailers has increased, adding 67,000 jobs.
According to the latest Ministry of Labor data, the number of job advertisements in April reached 9.3 million, the highest number in 20 years of data. According to the job site Indeed, job listings have increased even further since then.
Nevertheless, many factors still limit the availability of workers. Some people who are absent from work are worried about getting a service job that puts them in direct contact with the general public. In addition, during the pandemic, about 1.5 million people left the workforce to care for their children and other relatives and have not returned completely. Approximately 2.6 million older workers also retired early, taking advantage of their expanded equity portfolio and home prices.
In June, the percentage of Americans who have or are looking for a job (a number called workforce participation) remains unchanged, well below its pre-pandemic state. That number needs to grow in the coming months for the economy to be fully healthy.
However, the flat reading of workforce participation primarily reflects a declining proportion of teenagers who are working or looking for a job. In contrast, American participation in major working years between the ages of 25 and 54 actually increased at a steady pace.
In addition to the regular state unemployment allowance, a temporary $ 300 weekly federal unemployment allowance can make some people more selective when looking for or finding a job. About half of the states plan to stop paying supplements by the end of July, and supporters say they are trying to encourage many of the unemployed to look for a job. The government said Thursday that the number of people applying for unemployment assistance last week fell to 364,000, the lowest level since the pandemic began.
There are also signs that people are reassessing their work and personal life and are not necessarily interested in returning to a job that offers a particularly reasonable wage. The percentage of Americans who quit their jobs in April reached its highest level in more than 20 years.
Almost 6% of workers in industry categories such as restaurants, hotels, casinos and amusement parks quit their jobs in April. This is twice as much as workers in all sectors.
In many cases, the increasing number of people quitting their jobs due to high-paying positions can mean that even employers are struggling to maintain adequate staff levels. It means that.
A June manufacturer survey found widespread complaints among factory executives about labor shortages. Many have said they are experiencing heavy turnovers because they call them “wage dynamics”: other companies are pulling their workers apart at higher wages. ..
Karen Fichuk, CEO of Randstad North America, a recruiting and dispatching company, said the Randstad-owned Monster Recruiting Commission saw a 40% surge in job listings from May to June. He said he found it. In contrast, job searches increased by only 4%.
The struggle to fill the job is in line with the fast-growing economy. The government estimated that the economy had achieved strong annual growth of 6.4% in the first three months of this year. And for all of 2021, the Congressional Budget Office estimated growth to be 6.7% on Thursday. That would be the fastest calendar year expansion since 1984.
Meanwhile, consumer confidence rose in June, almost returning to pre-pandemic levels, according to The Conference Board. Americans also seem worried about recent price increases, with the percentage of consumers planning to buy homes, cars, or major appliances all rising. House prices soared the most in April in 15 years.
Read More:US Adds Solid 850,000 Jobs As Economy Expands Profit | Chicago News