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With the unemployment rate decreasing to 3.5% in July of 2022 and nonfarm payroll employment increasing by a little over half a million, both employment and unemployment rates have returned to their pre-pandemic levels. Job openings also saw a 6.6% decline, decreasing to 10.7 million available jobs. While we are starting to see available jobs decrease and unemployment level out, available jobs still remain near all-time high numbers. So what does this mean for employers?
Prior to the pandemic in February 2020, there were 7 million job openings with a 3.5% unemployment rate. Today, with that same 3.5% unemployment rate, there are 3.7 million more job openings. This means that job seekers in today’s market have roughly 52% more job options in 2022 than they did prior to the pandemic. With that many more options, it’s no wonder employers are still experiencing hiring difficulties.
Over the last 12 months, the average hourly earnings for all employees have increased by 5.2 percent. According to the Bureau of Labor Statistics' latest report, the average hourly earnings for all employees were at $32.27 and the average hourly earnings for all production and nonsupervisory employees were at $27.57.
Employers who stay up to date on wage expectations and actively offer competitive compensation and benefits are finding it much easier to hire quality employees in this market than those who do not. It’s important to be flexible and act fast with quality job seekers when negotiating compensation or you may lose them.
Employment in July experienced its largest average monthly gain over the prior 4 months with a little over half a million jobs added. This past month employment was also widespread across all industries with the biggest gains in leisure and hospitality (96,000 jobs) as well as professional and business services (89,000) jobs.
Other notable changes occurred in some industries as follows:
JWilliams Staffing is here to help your company navigate the workforce. We have a strong network of job seekers who are ready to work, and expert recruiters who carefully screen, train, and identify the cross-application of skillsets in candidates necessary to excel in their careers. Learn more about our temporary and direct hire staffing services today!
Sources:
Bureau of Labor Statistics. (2022a, Aug). JOB OPENINGS AND LABOR TURNOVER – JUNE 2022. https://www.bls.gov/news.release/pdf/jolts.pdf
Bureau of Labor Statistics. (2022b, Aug). THE EMPLOYMENT SITUATION — JULY 2022. https://www.bls.gov/news.release/pdf/empsit.pdf
