Job seekers are sour on the cooling labor market
From CNBC: 2024-07-24 14:19:02
Worker confidence in the job market has hit a low in Q2 2024, with many feeling pessimistic about landing preferred jobs. The market, once red-hot and resilient, has slowly cooled. As the Fed continues an aggressive interest-rate hike, economists worry about the labor market’s future stability.
In 2021, job demand surged as the economy reopened post-pandemic. Record-high job openings and rising wages gave workers options. Unemployment dropped to 3.4%, the lowest since 1969. The phenomenon led to “The Great Resignation,” with over 50 million quitting in 2022 for better jobs.
Despite avoiding a predicted recession, Americans remain cautious due to inflation concerns. The vibe of recession, or vibecession, looms even with a strong economy. Many job metrics have returned to pre-pandemic levels, with hiring rates at the lowest since 2017.
As of June 2024, unemployment stands at 4.1%, with a steady rise causing concern. The market’s readjustment is seen as positive, but further cooling poses risks. Economists suggest potential uncertainty ahead, even with current labor market stability from the federal government’s latest jobs report.