Three years after the U.S. economy experienced “The Great Resignation,” with millions leaving low-wage jobs for better opportunities and many adopting remote work, economists are now observing a significant shift, termed “The Great Stay.” This period is characterized by fewer workers quitting and a general slowdown in the hiring rate. Despite this, the U.S. job market remains relatively robust, with the Bureau of Labor Statistics reporting 275,000 new jobs in February, indicating a healthy labor market on the surface.
However, beneath these positive indicators, there are signs of strain. Notably, there has been a decrease in hours worked, particularly in manufacturing, reminiscent of recessionary levels, and an uptick in temporary job cuts. High-profile layoffs and cost-cutting measures across various sectors underscore the fragility of the current labor market, despite layoff rates still being below pre-pandemic levels.
The job market’s complexity is further evidenced by increased difficulty in finding new employment, with a noticeable rise in the duration of unemployment for many. Although certain sectors like healthcare, social services, and government are actively hiring, overall job opportunities appear more limited.
Amidst these challenges, some companies are striving to maintain their workforce. Amazon, for example, has reduced its payroll from post-pandemic highs but still operates with a significantly larger team than before the pandemic. This cautious approach to hiring and efficiency improvements reflects a broader trend of firms aiming to stabilize in an uncertain economic environment.
While job openings remain high, signaling ongoing demand for labor, the overall hiring plans are at their lowest since records began, according to job placement firm Challenger, Gray & Christmas.
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