May Employment Report: 650,000 new jobs expected

Companies are rushing to get more workers, but while many unemployed want better jobs and affordable childcare, others blame $ 300 a week for federal assistance.

Washington — US companies are rushing to fill millions of jobs as the economy resumes much sooner than many expected.

The decline of the pandemic has released considerable pending demand among consumers, including eating out, traveling, shopping, attending public events, and visiting friends and relatives. But it also Caused disconnection Between the enterprise and the unemployed. Companies are rushing to add workers soon. However, many unemployed are looking for a better job than before the pandemic, are still worried about getting COVID-19 because they don’t have an affordable daycare center, or have decided to retire early.

The disconnection Rapid slowdown in employment in April, Employers added far less jobs than economists predicted, and far less than they were hired in March.

Analysts forecast an improvement in May, with 650,000 jobs added in May, compared to the surprisingly lukewarm increase of 266,000 in April. According to data provider FactSet, the unemployment rate is projected to drop from 6.1% to 5.9%. If May’s forecasts are accurate, the pace of employment will be slower than many economists envisioned one million jobs per month in early spring. The economy still has 8.2 million fewer jobs than it did before the pandemic.

In any case, the economy is recovering at a healthy pace and companies are still looking for workers. Job listings in late May are almost 26% above pre-pandemic levels. Government data , Posted jobs have reached record highs since 2000.

And consumers are opening their wallets. In April, they increased spending after a significant increase in March, supported by the distribution of $ 1,400 stimulus checks. As more and more Americans were accustomed to staying in hotels and visiting entertainment venues, spending on services skyrocketed.

Service industries such as banking, retail and shipping, May expands at record high paceEvidence suggests that consumers are embarking on a long-awaited shift. Many of them go from buying big items while crouching at home to haircuts to sporting events. , Shifting to spending on services, even vacation trips.

Almost everyone is amazed at the speed and strength of the economy’s overall recovery from the pandemic recession, boosted by federal bailout aid and increased vaccination. The economy expanded steadily at an annual rate of 6.4% in the previous quarter, and economists expect growth to reach a tremendous pace of over 9% annually this quarter. This growth raises concerns about inflation. But for now, it’s boosting worker demand.

Number of people seeking unemployment benefits Fall for 5 consecutive weeks It’s a sign that the layoffs are declining, reaching the lowest levels since the pandemic began. There are still 15 million people receiving federal or state unemployment support, but that number has dropped from about 20 million in February.

Many companies blame $ 300 a week for federal unemployment benefits, which discourages some unemployed people from getting jobs. Republican governors in 25 states responded by terminating the benefit prematurely from this month, before the benefit was scheduled to end nationwide on September 6.

Indeed’s Chief Economist, Jed Kolko, said: I found that The announcement that federal benefits will be discontinued has led to increased job search activity in these states, such as clicking on classified ads, but the increase disappeared a few days later.

Becky Frankiewitz, president of the North American division of the dispatching company ManpowerGroup, said many of the company’s customers are raising salaries and benefits to attract more applicants. Some of these companies, especially manufacturing and warehousing, are also experimenting with other tactics, such as paying employees weekly or daily instead of every two weeks. Manpower also encourages clients to make offers on the same day rather than waiting for an interview.

Frankie Witz said that about 60% of manpower’s temporary placements quit their jobs before the temporary allocation was completed. The main reason is that we are getting better offers.

“People have choices,” she said. “Companies need to offer fast cash, fast hiring, and great flexibility in how they work.”

But for now, there are signs that many unemployed people are cautious about looking for a job.

On Thursday, Tony Sarsam, CEO of grocery distributor and retailer SpartanNash, said in a conference call with investors that the company attended a job fair for 60 companies with 500 jobs last month. Told.

“Only four candidates have appeared,” Salsam said.

AP retail writer Anne D’Innocenzio contributed this report from New York.

May Employment Report: 650,000 new jobs expected

Source link May Employment Report: 650,000 new jobs expected

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