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U.S. Employment Accelerates in June as Workers Earn Higher Wages | Chicago News

Shoppers will enter the retail store on Thursday, June 24, 2021 in Buffalo Grove, Illinois, as indicated by the recruitment sign. (AP photo / Nam Y. Huh)

Washington (AP) — A promising job surge added 850,000 jobs to US employers in June. This is well above the average for the last three months and indicates that it can take some time for a company to find enough workers to fill in the jobs it is looking for.

Friday’s report from the Ministry of Labor was the latest evidence that the economic resumption is driving a strong recovery from the pandemic recession. Restaurant traffic across the country has almost returned to pre-pandemic levels, with more people shopping, traveling, and attending sports and entertainment events. The number of people flying daily has regained about 80% of pre-COVID-19 levels. And American confidence in the economic outlook has almost completely regained.

The report also suggested that American workers dominate the job market as companies eager to staff in a fast-growing economy hang higher wages. The average hourly wage in June rose steadily to 3.6% compared to a year ago. This is faster than the pre-pandemic annual pace. In addition, the number of part-time workers who prefer full-time jobs has plummeted, increasing the proportion of new employees and acquiring full-time jobs. This is a healthy sign.

“This underscores the growing bargaining power of the workforce,” said Joe Brusuelas, chief economist at tax accountant firm RSM. “As the US economy expands, they are more confident that they will get better jobs at better wages.”

In a speech at the White House, President Joe Biden advertised an increase in jobs, and his economic policies, including the $ 1.9 trillion economic bailout plan enacted in March, made it easier for workers to find higher-paying jobs. It was suggested that the purpose was to do so.

“The strength of our recovery helps us turn the script over,” Biden said. “Instead of workers competing with each other for jobs that are in short supply, employers are competing with each other to attract workers.”

Republican National Committee says employment growth is stronger in Republican-run states where the governor has moved to cut off federal unemployment payments of $ 300 a week to encourage more people to look for jobs I responded with caution.

The unemployment rate rose from 5.8% in May to 5.9% in June, according to a report on Friday. Despite the steady growth of the employment market, the unemployment rate is well above the 3.5% before the pandemic and the economy maintains 6.8 million jobs, below pre-pandemic levels. I will.

Some employers also offer signature and retention bonuses and more flexible time, especially as workers compete more intensely in restaurants, tourists and entertainment venues. Indeed has found that the percentage of classified ads that promise bonuses has more than doubled over the past year.

These incentives are gradually pulling more workers away from the bystanders, creating a small dent in the labor shortage. Although below pre-pandemic levels, the proportion of Americans in key years of employment between the ages of 25 and 54 who are working or wishing to work has risen steadily.

Karen Fichuk, CEO of recruitment and dispatch company Randstad North America, said higher-paying companies are generally finding the workers they need. According to her, offering $ 15 an hour was particularly effective in persuading people to take on the job.

“Clients raising wages are filling up their jobs,” said Fichuk, referring to the companies that Randstad employs. “$ 15 per hour seems to be one of these thresholds. It’s a hint of scale.”

Travis Crabtree, CEO of Houston-based Swyft Filings, handles government forms for those who set up small businesses, and his 85 companies are as more Americans start their businesses. He said he enjoys rapid growth. He has 19 jobs.

For entry-level customer service workers, Swyft has already paid $ 15 per hour to provide a stable work schedule and office environment. So there was no problem finding new employees, Crabtree said.

But as many tech companies moved from California to Texas, he had to offer more perks to meet higher-paying jobs (eg digital marketers, data analysts). After the pandemic, staff will be able to work some time from home.

“We definitely felt the need to enhance the game with that kind of thing,” said Clubtree. “It’s another ball game for us. Two years ago, we weren’t competing with Facebook, LinkedIn, and Teslas around the world.”

June recruitment was particularly strong at restaurants, bars and hotels that were blamed for layoffs due to the recession. Those companies have added 343,000 jobs. The government has added 188,000 jobs, primarily in the education sector. Employment by retailers has increased, adding 67,000 jobs.

Still, there are still factors that prevent many from getting a job. About 1.6 million people said they weren’t looking for a job in June for fear of getting the virus, down from 2.5 million last month. And the 2.6 million people who worked before the pandemic retired.

Extra unemployment assistance may allow some people to be more selective in finding and taking jobs. About half of the states plan to stop paying supplements by the end of July, and supporters say they are trying to encourage many of the unemployed to look for a job.

Electamos, who lives near Atlanta, has reduced its weekly unemployment allowance from $ 416 to $ 116 as Georgia stopped paying $ 300 a week in federal subsidies. Still, Moss is reluctant to get a advertised low-paying job, with an hourly wage of less than $ 10. She earned $ 13 an hour in a non-profit organization until she lost her childcare in September and had to quit her job.

“It may be enough to pay the rent after tax, but that’s definitely it,” she said of the job she saw offering $ 9.75 per hour. “People really have problems” Go back to low-paying jobs.

There are also signs that people are reassessing their work and personal life and are not necessarily interested in returning to low-paying jobs in particular. The percentage of Americans who quit their jobs in April reached its highest level in more than 20 years.

“People are now aware that they have more options,” said Lisa Hufford, founder of Simplicity Consulting, a company that puts professionals in contract work. “The talent market is very hot right now. Everyone I know is now evaluating their options.”

Almost 6% of workers in industry categories such as restaurants, hotels, casinos and amusement parks quit their jobs in April. This is twice as much as workers in all sectors.

The increase in the number of retirees means that even the employers who are hiring may have a hard time maintaining sufficient staff levels.

A June manufacturer survey found widespread complaints among factory executives about labor shortages. Many have said they are experiencing heavy turnovers because they call them “wage dynamics”: other companies are pulling their workers apart at higher wages. ..


U.S. Employment Accelerates in June as Workers Earn Higher Wages | Chicago News

Source link U.S. Employment Accelerates in June as Workers Earn Higher Wages | Chicago News

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