Over the last few months, the once booming job market has started to show signs of slowing. What does this mean for those looking for employment? Let’s take a look at what experts are saying.
Numbers vs. Reality
If you’re looking solely at the numbers, the economy doesn’t seem to be in bad shape. In fact, the unemployment rate dropped to 3.5% from 3.7% in a month. It remains close to pandemic lows. Additionally, the number of jobs grew for the 21th month in a row in September. However, some experts believe that the major reasons for these numbers are the fact that many people have simply dropped out of the labor force or stopped looking for employment altogether. When you look a little closer at the current job market, you’ll see that job postings have decreased significantly. Layoffs are becoming a reality for some and job creation has slowed to its lowest point in a year and a half.
Stock Market and the Government
The Federal Reserve has been waiting for a cool down in the job market in order to help combat inflation. Their goal was to raise interest rates. However, external factors like war, geopolitical turmoil and a worldwide food shortage have worked against the Federal Reserve.
Additionally, with recent drops in the stock market, companies are scrambling to protect themselves. Investors worry that the recent drops in the stock market could be an early indicator of prolonged economic uncertainty and eventually a recession. Many have started to prepare themselves by instituting layoffs.
Layoffs
Unfortunately, many companies have started to prepare for the eventuality of a recession. An article written by Abha Bhattarai for washingtonpost.com explains, “A number of major companies are hitting the brakes on hiring and, in some cases, letting workers go. St. Vincent Charity Medical Center in Cleveland said this week it will lay off 978 employees. Hardwick Clothes, the country’s oldest suit-maker, is shutting down a plant in Cleveland, Tenn., that will cost 129 people their jobs. And Peloton, the home gym equipment maker and pandemic darling, is laying off 500 workers, or 12 percent of its workforce, in its fourth round of job cuts this year.
Public schools lost 21,700 jobs last month, while the trucking industry was down 11,000 positions and employment in insurance fell by 9,000, the Labor Department’s latest jobs report shows. There were also thousands of job losses in retail, legal services and advertising. In all, U.S. employers added 263,000 jobs in September, considerably fewer than the year-to-date average of 420,000 jobs per month.”
This doesn’t mean finding a job or changing jobs is an impossibility. However, it does mean that the process of securing a good job may take longer than you’d expect. Companies are currently playing it safe in order to protect themselves from economic turmoil. Keep that in mind as you’re waiting to hear back from potential employers. Don’t take a lack of response personally and keep at it!
