August 9, 2022

Last month, the US economy added 528,000 jobs as reported by the Bureau of Labor Statistics in its latest payroll report. With this, both unemployment and payrolls returned to pre-pandemic levels, with unemployment reducing to 3.5%. This is more than double expectations and continues this year’s trend of hiring exceeding analyst expectations. Wages are also up, with a 5.2% increase from last year. ⁽¹⁾

However, for employers, the job market is becoming somewhat more friendly. Some employers may find that recruiting workers, and getting them to stay, is becoming less of a challenge. Hospitality, retail, healthcare, and other industries hardest hit by worker shortages had among the largest gains in job growth. Companies like HCA Healthcare and Marriott International say hiring is up and turnover is down. Attrition at large government contractors like Booz Allen Hamilton has returned to pre-Covid levels. ⁽²⁾

A factor in the recent changes is inflation, workers who are looking for jobs are more willing to take offers. Fears about rising prices and a recession appears to be keeping some workers in their existing jobs, though turnover does remain elevated compared to historic levels in some industries.

Overall, last month’s labor market was positive for both workers and employers. Wages continue to increase, but attrition and turnover have improved. Workers are seeking higher wages to combat inflation but may accept an offer more readily and stay in their roles longer. ⁽³⁾

If you’ve recently changed jobs, it may be a good time to consult with a Financial Advisor. Contact me for more information or with any questions.