A healthy sign: more jobs and higher wages
Reopening made possible by vaccinations against COVID-19.
America’s employers added 850,000 jobs in June, well above the average of the previous three months and a sign that companies may be having an easier time finding enough workers to fill open jobs.
Friday’s report from the Labor Department was the latest evidence that the reopening of the economy is propelling a powerful rebound from the pandemic recession. Restaurant traffic across the country is nearly back to pre-pandemic levels, and more people are shopping, traveling and attending sports and entertainment events. The number of people flying each day has regained about 80% of its pre-COVID-19 levels. And Americans’ confidence in the economic outlook has nearly fully recovered.
The report also suggested that American workers are enjoying an upper hand in the job market as companies, desperate to staff up in a surging economy, dangle higher wages. In June, average hourly pay rose a solid 3.6% compared with a year ago — faster than the pre-pandemic annual pace. In addition, a rising proportion of newly hired workers are gaining full-time work, as the number of part-time workers who would prefer full-time jobs tumbled.
Hiring in June was particularly strong in restaurants, bars and hotels, which collectively absorbed the brunt of the layoffs from the recession. Those businesses added 343,000 jobs. Governments added 188,000 positions, mostly in education. And hiring by retailers picked up, with 67,000 jobs added.
Yet there are still factors holding back many people from taking jobs. About 1.6 million people said they didn’t look for work in June for fear of contracting the virus, though that figure dropped from 2.5 million in the previous month. And 2.6 million people who were working before the pandemic have retired.
There are also signs that people are re-evaluating their work and personal lives and aren’t necessarily interested in returning to their old jobs, particularly those that offer low wages. The proportion of Americans who quit their jobs in April reached its highest level in more than 20 years.
But let’s look at the positive side: the economy is being reactivated and companies are hiring more employees. Do you want to know more about how to hire people? Contact Us