The State of the Economy and Job Market: Looking Ahead
Do you want to know more about the state of the economy and the job market? Keep reading and learn more about them both here.
Did you know that the value of the U.S. economy is estimated to be more than $25 trillion by 2024? While that figure is massive and will likely keep the U.S. as the top economy in the world, there is another figure that may be a better indicator of success: the job market.
Read on to learn more about the state of the economy and what the future of the job market looks like.
What Is the State of the Economy?
For the next year, the U.S. economy is expected to do well, although growth is expected to slow in the two years that follow. While part of the positive economic status is due to the continued emergence from the pandemic, other factors including increased business investment and consumer spending are spurring growth. Even with the return of many pre-pandemic norms, some sectors are still surging, including e-commerce, online education, and healthcare.
What Is the State of the U.S Job Market?
Similar to the economy, the job market is also doing well, favoring job seekers. The current unemployment rate is less than four percent, down from the pandemic high of almost 15 percent.
Even with the low unemployment rate, some sectors of the job market are struggling to find workers. Foodservice companies and the hospitality industry are struggling with retainment. Other industries like health services and durable goods manufacturing have more openings than compatible job seekers.
The shortfall is due to mass resignations and job seekers being more selective with openings. Even with the low unemployment rate, some sectors like transportation and construction have a labor surplus. Many employers are offering higher pay and increased benefits to entice candidates, such as increased paid time off.
What Trends Are We Seeing?
One of the major economic trends is rising inflation. Inflation happens when the prices of goods and services increase. This is due to several factors, most notably supply chain issues, caused by the pandemic and the war in Ukraine, and the rising cost of gasoline.
Another trend is rising interest rates. The Federal Reserve recently raised interest rates to counter inflation. This will have the greatest impact on homeowners.
How Do Employers Find Talent?
Good resources are staffing and recruiting agencies. These firms have databases of job candidates and are experienced in matching relevant experience to the needed skills. Some agencies specialize in a specific industry.
Moving Forward in the Current Economy and Job Market
Now that you know about the state of the economy and job market, are you ready to make your move? Growth will continue for several years and, if you’re in the right industry, employers may even compete for your services. Staying on top of economic trends is also helpful, whether you’re trying to gauge the job market or predict the economy.
If you’re ready for help with finding talent, contact us for all your staffing needs.