Strong job growth in the US will continue, according to The Conference Board Employment Trends Index. However, a tight labor market will also remain.
“The Employment Trends Index remained on its historically strong upward trajectory, suggesting rapid job growth is likely to continue over the next several months,” said Gad Levanon, head of The Conference Board Labor Markets Institute. “This high mark comes off the back of nearly 1 million new jobs added in both June and July and a steep decline in the unemployment rate.
However, recruiting and retention difficulties — and rapid wage growth — are
expected through the summer, particularly in industries key to the reopening of
the economy, such as food service and leisure and hospitality.”
Levanon noted the rapid wage growth is likely to lead to higher inflation in the
coming year and despite the still-high unemployment rate, many employers are
having difficulty finding qualified workers. According to the National Federation
of Independent Business, 49% of firms reported being unable to fill open
positions in July — an all-time high.
For many of those currently unemployed, job-search intensity remains low due to an array of factors, according to Levanon. These include enhanced unemployment benefits, fears of getting infected, a lack of childcare, and interest in pursuing and preparing for a different type of career.
“Going forward, we do expect economic activity in in-person services to be negatively impacted by the current resurgence of infections fueled by the delta variant,” he said. “While this delta wave may produce slight slowdowns in hiring, we expect job growth to remain very strong overall.”
Source: Staffing Industry Analysts