June Employment Increase
Since the beginning of COVID-19, the job market has continued to experience rapid loss – so much so that it has coined the term The Great Resignation. However, last month the unemployment gap began to show signs of improvement. According to the Bureau of Labor Statistics, U.S. employers added 372,000 new jobs over the past month. This surpassed the forecasts of economists; the U.S. was vastly heading into a recession due to a lack of employment offerings.
Where Is The Growth
When looking at the rapid job growth in June, the specific industries listed below lead the increase:
- Professional and business services
- Leisure and hospitality
- Health care
When it comes to overall unemployment, the gap has now reached 524,000 jobs. While these industries maintain strong job growth, labor force participation did not see a major rise. The number of people in the labor force fell by 353,000.
Overall Unemployment
The private sector has recovered and exceeded the employment opportunities, gaining over 140,000 jobs compared to pre-pandemic. However, the overall unemployment rate has still remained at 3.6%, correlating to about two jobs for each unemployed worker. The labor market will continue to remain on the rise as the economy remains low.
Candidates Power Continued
According to SHRM, the average hourly wage increased by 10 cents in June, although it remains a tight labor market. Candidates continue to hold the power over their workplace and organization. Through this, employers have implemented a variety of benefits to attract and retain top talent. With new positions on the rise, it is more vital employers implement the benefits their employees desire.
Why GMS
Partnering with GMS allows you to ease the administrative functions of your business. Through the ups and downs of the economy, it’s important to continue ongoing efforts to attract and retain top talent. Through times of rapid change and uncertainty, you can rely on GMS. Contact us today!