Job Market Recap: Top 5 Takeaways from July 2022
#1 - Take the bite out today’s “dog days” of summer hiring
With summer now at its halfway point, businesses are finding that the status quo isn’t going to work when staffing up for August, September, and beyond. Hourly job seekers have a new mindset, and yesterday’s hiring playbook is outdated.
For fresh hiring solutions, check out our Roundup of Summer Hiring Content. It brings together a range of insightful resources (survey, report, infographic, and articles), as well as timely tips and recommendations. Much of the essential info is culled from our survey of 3,000+ hourly workers and the businesses who hire them. Find out why 51% of workers are looking for more flexibility in their next job, and what you can do to attract them.
#2 - June jobs report shows a dichotomy in the workplace
370,000 new jobs were added to the economy in June 2022 (although many economists had predicted totals near the 250,000 mark). These numbers suggest that despite an economy with a few wobbly wheels, job growth remains strong and that talk of a recession is perhaps a tad premature.
Education and health services led in new job creation, followed by professional and business services and leisure and hospitality. Despite claims of retailers scaling back on hiring, they still gained in the neighborhood of 15,000 jobs in July.
However, there was a surprising (and sizable) drop in another rate many economists use to measure joblessness: a combination of 1. discouraged workers (who don’t feel the right jobs are available) and, 2. those holding part-time jobs for economic reasons (but actually want full-time jobs). This mixture of unemployed workers fell from 7.1% to 6.7%, suggesting that given the unsteady economy, people are now taking jobs they previously might not have. Stay tuned as we keep an eye on this trend, and how it might impact your hiring strategy for not only the summer but also for the upcoming holiday season.
One final stat culled from the June jobs report is hourly earnings, which rose 5.1% compared to this time last year. This was higher than many estimates but understandable, as businesses are hoping to lure job seekers by increasing their pay rates.
#3 - US economy recoups 21 million jobs lost during COVID-19
When the pandemic first hit the US in full force in March of 2020, it was the beginning of a tailspin where 21 million jobs were lost in America.
Amazingly, we’ve now recouped these jobs in record time (with this rebound happening in just two short years). For perspective, the economy took a painful six years and five months for the job market to fully bounce back during the sluggish recovery from the Great Recession of 2007-2009.
Yet, hiring elusive for businesses as workers are reluctant to return to the job force as quickly as they exited the workforce. Check out more in our recent Weekly Hourly Hiring Report.
#4 - Job seekers are playing musical chairs among job sectors
Despite a decline in job-seeker confidence in July, many hourly workers and job seekers are jumping ship in search of flexibility and career advancement.
With roughly two open jobs for each willing candidate in today’s tight labor market, job seekers have the freedom to “reshuffle” their careers and level up. They’re taking their skills to transferable positions. Check out the top 5 industries where hourly workers are moving to.
#5 - Employers are changing their hiring strategies
What worked before is not working now, and savvy businesses are adapting. Flexible work schedules and using on-demand workers are just two of the strategies hourly employers are adapting. Read more