The job market is still favorable for workers. ‘You’re in a lucky position,’ economist says
The U.S. job market is gradually cooling but remains hot despite a year-long government campaign to reign it in, amounting to a favorable environment for many jobseekers, economists said.
«It still boils down to higher worker leverage, better outside opportunities, an easier time exchanging jobs for better ones and substantially greater job security,» said Julia Pollak, chief economist at ZipRecruiter.
«You're in a lucky position,» she added, referring to employees.
Federal and private labor data issued Thursday support that notion.
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In May, layoffs declined slightly and employers hired more workers, according to the Job Openings and Labor Turnover Survey, issued monthly by the U.S. Bureau of Labor Statistics.
Americans also quit their jobs in larger numbers, according to the JOLTS report. Since most workers quit for new employment, the uptick suggests a rebound in workers' confidence they can find a new job, economists said.
While job openings — a barometer of business' demand for workers — fell by about 500,000 in May, they remain well above their pre-pandemic level.
In all, job openings and monthly quits are respectively 40% and 15% higher than they were before the Covid-19 pandemic, while monthly layoffs are 21% lower, pointing to a «robust and resilient labor market,» Pollak said.
Further, payroll processing firm ADP said Thursday that jobs surged by 497,000 in the private sector in June — handily beating the 220,000 estimate. The U.S. Department of Labor will issue its monthly jobs report on Friday morning, and the ADP data
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