The latest data from the Ministry of Labor made public on October 7 shows, according to the Washington Postwhat “Job growth continued to slow in September, another sign that the labor market is cooling after a remarkable peak earlier this year”. The Wall Street Journal add:
“Labour market participation has remained stubbornly below pre-pandemic levels, posing a challenge to the economy.”
Hiring freeze and layoffs in several sectors
Another sign of concern: according to a report quoted by USA TodayUS employers announced nearly 30,000 job cuts in September, “an increase of 68% compared to the previous year and 46% compared to the previous month”. Closure of businesses and market conditions are the two main reasons given. The automotive industry and the health care sector are the most affected. the New York Times reports layoffs and a hiring or project freeze at several companies such as Goldman Sachs, Robinhood, Netflix, Amazon and Meta.
“Everyone is feeling the repercussions”, says the general manager of the strategy firm BTS, Suzanne Bates. Laid off in August, Meredith McCleary, 38, confides to the daily that she spends forty hours a week looking for a job:
“When the shops reopened [après la pandémie]everything came back to life, things were improving, we had a choice. [Maintenant] it’s a bit like everything is going the wrong way economically.”
“It was a different world a year ago”
Recruiters contacted by the New York newspaper note that the benefits offered to job seekers such as contract signing bonuses and flexible working conditions are disappearing. “It was a different world a year ago”, sums up Tom Gimbel, managing director of the investment company LaSalle Network. He advises job seekers to make sure their current job really doesn’t satisfy them before taking the leap elsewhere: “Don’t just think about money!”
Interviewed by Forbesthe chief economist of the financial services company Comerica, Bill Adams, urges caution:
“The pace of job growth will on average be significantly slower in the coming quarters.”