The Great Resignation is still red hot — but may not last
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Workers are still enjoying the benefits of record-high labor demand, a trend that was popularized by the pandemic.
According to economists, however, these economic headwinds may mean that those benefits might not last for as long.
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Workers are attracted to better wages and options when they are forced to leave.
According to the Labor Department, there were 11.5million job opportunities at March’s end, surpassing December’s record of over 11.4 million. According to the Labor Department, job openings are a reflection of business demand.
In March, the unemployment rate was also near its lowest point in history as employers continued to cling to their workers. In March, there was a 0.5-to-1 ratio between unemployed people and job openings. This is the lowest recorded figure. accordingU.S. Bureau of Labor Statistics Data dating back to 2007.
The hourly wage rate grew by 6% in March. It was higher than any level prior to 1997. dataThe Federal Reserve Bank of Atlanta compiles these data. (The data represents the average three-month median wage growth.
Julia Pollak (chief economist, employment website ZipRecruiter) stated that there is a huge demand for workers. This is the most job-seeking market we have ever seen.
A lack of labor was caused by the pandemic.
As Covid-19 vaccines became more widely available and the U.S. economy began to reopen, demand started to rise in 2021. For many reasons workers did not rush to take over these jobs, such as ongoing health risk.
This dynamic drove employers to raise wages and compete for employees. It was easier for employees to change jobs. Over 47 million people voluntarily left their jobs in 2021A record for an entire year.
According to economists, the most severe labor market conditions were initially felt in certain industries such as leisure and hospitality. This industry includes jobs in bars and restaurants, which are typically more hands-on and less lucrative.
Daniel Zhao, an economist with Glassdoor, says that these conditions have widened in recent months to more segments of the economy.
Zhao explained that the demand is high, which means more job seekers are likely to seek out jobs with better pay and benefits.
He said that the market for job seekers will likely slow down in the coming months but at a level still favorable to workers.
The ongoing war in Ukraine and Federal Reserve’s monetary policy may limit the positive times. In order to combat high inflation and cool the economy, the U.S. central banks is raising interest rates. The raises received by many workers are more than offset by inflation.
Zhao claimed that “in the next few months the hot job market won’t go anywhere.”
“[But]He said that now is the best time to seize the opportunity of a tighter labor marketplace for workers, as there’s no guarantee such conditions will last.”