Job market is undergoing an 'immaculate cooling,' says economist — but there are pockets of heat

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Job openings, hires and 'quits' are falling gradually. But workers still enjoy considerable leverage in some sectors, like arts, entertainment and recreation.

The "quits" rate — the number of people quitting in June as a share of total employment — is hovering near its pre-pandemic level. The rate of hiring among employers declined in June to 3.8%, roughly in line with pre-pandemic levels, according to the JOLTS report.Jason Furman, an economist at Harvard University and former chair of the White House Council of Economic Advisers during the Obama administration.

The Federal Reserve has raised borrowing costs aggressively — with the aim of slowing the economy and inflation — and banks have tightened lending, all of which ultimately impact the job market.Though conditions have "normalized substantially" since the great resignation's peak from mid-2021 to mid-2022, 8% more employees are quitting their jobs each month than before the pandemic, and layoffs remain 22% lower, said Julia Pollak, chief economist at ZipRecruiter.

"Workers are in high demand across the sector as Americans flood back to concerts, baseball games and movie theaters," Pollak wrote. "Quits in the industry hit an all-time high, and workers found it easier to switch into better jobs."across state and local government are also at all-time highs, suggesting municipalities "are now on a hiring spree" now that competition for workers is a bit less intense in the private sector, she said.

"Certain industries are still very hot," Zhao said. "It's more important for job seekers to understand what's going on in their industry than it might have been a year or two ago."

 

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