The job market is still favorable for workers. ‘You’re in a lucky position,’ economist says

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Federal and private job data issued Thursday suggests the labor market has remained resilient in the face of economic headwinds.

in the private sector in June — handily beating the 220,000 estimate. The U.S. Department of Labor will issue its monthly jobs report on Friday morning, and the ADP data may signal continued strength across the U.S. job market.Workers gained unprecedented leverage as the U.S. economy reopened broadly in early 2021. Workers started to quit in record numbers — in a trend that came to known as the "great resignation" — and their wages grew at the fastest pace in decades.

The job market has somewhat cooled as the Federal Reserve has raised borrowing costs to rein in inflation, and as banks have pulled back on lending due to turmoil earlier this year. But it has continued to defy expectations to the upside. "It's really mind-blowing that with all the monetary tightening, with inflation, a banking crisis, that job openings are still this high," said Aaron Terrazas, chief economist at career site Glassdoor.chief economist at GlassdoorHowever, it's not good news for all workers; there are some areas of weakness, economists said.For example, the information sector saw 6% more layoffs and 17% fewer quits in May relative to pre-pandemic levels, Pollak said, citing JOLTS data.

Broadly, while jobseekers can take comfort in ample hiring and their ability to quit for better jobs, it may take longer to find a good match amid a gradual labor market slowdown, Pollak said."It is a numbers game, and workers may have to play it more smartly going forward," Pollak added.

 

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