Last month, October, the economy saw a significant amount of new jobs. Employers were able to create approximately 571,000 new jobs. This number exceeds expectations. After coming off a hot month of September with new jobs hitting 568,000, they expected to see job creation take a step back to only about 400,000 new jobs for the month of November. Clearly, the economy exceeded its expectations.
These job creation numbers are very interesting considering the times that we are in. Right now there is a labor shortage in our economy. There is a significant amount of open jobs that are just not filled. Businesses are constantly looking to hire more people. They have had to resort to incentives such as flexible schedules and higher wages. The labor has a majority of the power right now in the economy. For that reason, it is very strange to see new job creation numbers exceeding expectations.
What are your thoughts on why job creation is continuing to rise at such a high rate considering businesses are already struggling to find labor?
Source: https://www.usnews.com/news/economy/articles/2021-11-03/adp-employers-added-571-000-jobs-in-october-beating-expectations
4 comments:
I think we are seeing the anomaly of job-creation rising and businesses struggling to find labor is due to people's preferences. The pandemic has caused people's job preferences to alter. When the pandemic started many companies moved from in-person work to remote work. Because of that people's preferences have changed because people have seen that they can accomplish the same work, but they do not have to be in the office to do so. The pandemic has also caused people to shift their focus on their personal health, some do not feel safe going back into an office setting. Usually, after tough times, our economy experiences rapid growth and that is apparent with the about of new jobs available, but this is combated with people have changed their viewpoints on how work should be conducted.
As we get further past the pandemic, I think job growth will return to somewhat normal. There won't be as much hesitancy to look for a job as stimulus and savings begin to wane for most people. Also less threats from an active pandemic might encourage people back to frontline jobs again as those jobs are the hardest to recruit for right now. However, I think there will be lingering issues from this job market as people will continue to demand for better working conditions and fair pay.
It is not surprising, that new jobs are created on the market. Vaccines made this achievable. There are not many COVID-19 cases as we used to see. Companies are actively hiring. I spend around 2-3 hours on Linkedin every day. The pay is good, as well as perks for the jobs. I am very happy to see the rise of jobs, which will eventually put the U.S. economy back on its feet.
This observation is very interesting due to the fact that their is a labor shortage in the US as of right now. While this is the case, I feel that many jobs have been created virtually due to COVID-19 and have reason to stay due to the fact that this is the direction a lot of employees want to move toward.
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