Last week ended on a high note, with jobs growing faster in June than in any previous month since September. Companies are showing signs that workers are ready to return to work when offices reopen.
By some estimates, the number of jobs increased by more than 800,000, primarily travel and recreation. However, unemployment increased, approaching 6%. The higher unemployment rate is explained by the fact that people who actually start looking for work decided to leave work for a while. More than 300,000 jobs are most likely associated with travel and leisure.
A spokesman for job search company Indeed said that employers are increasing the number of jobs, even though finding qualified professionals is still a big problem for employers.
Does the increase in the number of jobs mean pressure on the Federal Reserve? Not necessarily, as the number of jobs is still declining by almost 7 million by pre-pandemic standards. The result is a stable stock market today. Employers continue to strive to keep pace with the growing economy and labor demand forecasts are still somewhat unpredictable.
Of particular note is the fact that, according to Bloomberg Financial Markets, the male workforce of African Americans has reached the highest level.
Positive flows can create additional incentive for companies to seek bank loans, this time not for financial aid but for positive growth initiatives, even as many companies are still applying for loan forgiveness under the PPP initiative. Since wages will inevitably rise, the costs of running a business are likely to rise even if consumer demand keeps pace with the times.
President Biden stated: “The power of our recovery helps us turn the script around. Instead of workers competing with each other for jobs that are in short supply, employers are competing with each other to attract workers. ”
The hiring premiums rose sharply, despite the fact that the average number of hours per week fell, which is clearly a sign of problems. The average number of hours per week has been reduced to less than 35 hours per week.
The national minimum wage debate may become less and less relevant in the short term, as the demand for skilled workers will lead to higher wages.