At first glance, everything else looked mostly flat, including unemployment (4.1%) and the labor participation rate (62.6%).
But beneath the surface, things are getting interesting.
As an initial matter, 50% of June’s job gains came from the government, health care and social care. While “jobs are jobs,” it’s worth noting that bellwether sectors—like retail, business and professional services—actually experienced modest declines. At the same time, April and May’s jobs were revised downwards by 111,000, one of the largest downward revisions in recent years. These adjustments are the result of new reporting that affected prior estimates.
Compounding this month’s data is recent reporting on workplace trends that we’ve all observed anecdotally. For example, WSJ noted this week that fewer people are quitting … and fewer are getting promoted. Forbes, BBC and NPR have reported extensively on “ghost jobs,” which may represent more than 50% of current listings. And, of course, trends like “quiet quitting,” “quiet vacationing,” “quiet firing” and “stealth layoffs” continue to complicate the hiring outlook for both employers and employees.
Like we said, the labor market is weird.
But it’s probably also the new normal. Our national teams at TalentZök, Simply Biotech and Defense Search speak with thousands of employers and candidates every week. Based on our conversations, we’re convinced the hiring landscape has changed permanently. Employers who are waiting for things to “get back to normal” might be waiting forever. So, what does this mean for our clients?
We recommend you rethink your hiring process from top-to-bottom to remain competitive in this brave new world. Total compensation is important, but it’s equally important to have a recruitment and interview process that reflects the reality of the evolving employment landscape. Practices that were standard just 10 years ago may no longer be appropriate or effective in today’s market.
If you need advice or support in this process, please contact us. We’re always happy to help.
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