June 2021 Jobs Report: US Creates 850,000 Robust Jobs As Hires Bounce Back
Friday’s Labor Department report was the latest sign that the reopening of the economy is propelling a powerful rebound from the pandemic recession. Restaurant traffic across the country is almost back to pre-pandemic levels, and more people are shopping, traveling, and attending sporting and entertainment events. The number of people flying each day has returned to about 80% of its pre-COVID-19 levels. And Americans’ confidence in the economic outlook has almost fully recovered.
The result is that many companies are desperate to hire and have posted a record number of jobs. With increased competition for workers, especially in restaurants and tourist and entertainment venues, employers are offering higher wages, along with signing and retention bonuses and more flexible hours. The proportion of jobs that promise a bonus has more than doubled in the past year, the employment website Indeed found.
The unemployment rate fell from 5.8% in May to 5.9% in June, according to the report. Despite the steady improvement in the labor market, unemployment remains well above the 3.5% rate that prevailed before the pandemic, and the economy remains at 6.8 million jobs below its level. before the pandemic.
But unemployment fell from 14.8% in April last year, just after the coronavirus outbreak and tens of millions of layoffs triggered.
The number of advertised jobs reached 9.3 million in April, the highest in 20 years of data, according to the Labor Department. The employment website Indeed said that job postings have since increased further.
A temporary federal unemployment benefit of $ 300 per week, in addition to regular state unemployment assistance, may allow some people to be more selective in finding and taking employment. About half of the states plan to stop paying the supplement by the end of July, which supporters say is an effort to get more unemployed people looking for work.
On Thursday, the government reported that the number of people applying for unemployment assistance last week fell to 364,000, the lowest level since the start of the pandemic.
There are also signs that people are re-evaluating their work and personal lives and are not necessarily interested in returning to their old jobs, especially those that offer modest wages. The proportion of Americans who left their jobs in April reached its highest level in more than 20 years.
Almost 6% of workers in an industrial category that includes restaurants, hotels, casinos and amusement parks left their jobs in April, twice the proportion of workers in all industries who did. made.
The growing number of people leaving their jobs, often for higher paying positions, means that even employers who have hired can struggle to maintain sufficient staffing levels.
A survey of manufacturers in June revealed numerous complaints among factory executives about labor shortages. Many said they were experiencing significant turnover due to what they called “wage dynamics”: other companies attract their workers with higher wages.
Karen Fichuk, managing director of Randstad North America, a recruiting and staffing company, said job site Monster, which Randstad owns, found that job postings jumped 40% from May to June. . Job searches, on the other hand, only increased by 4%.
The struggle to fill jobs coincides with a rapidly growing economy. During the first three months of the year, the government estimated that the economy grew at a strong annual rate of 6.4%. In the April-June quarter that just ended, the annual rate would have hit a sizzling 10%.
And for the whole of 2021, the Congressional Budget Office estimated on Thursday that growth will amount to 6.7%. It would be the fastest calendar year expansion since 1984.
Meanwhile, consumer confidence rose in June, according to the Conference Board, and is almost back to its pre-pandemic level. Americans also don’t seem daunted by recent price increases, with the percentage of consumers considering buying a home, car, or major household appliance on the rise. Home prices increased the most in April in 15 years.
Factory output is also growing at a steady pace, in part because companies are investing more in industrial machinery, airplanes and technology. These investments could make workers more efficient in the years to come and stimulate long-term growth.
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