The variety of out there jobs in the U.S. leveled off late this summer season, the newest signal momentum in the labor market is easing six months after the coronavirus pandemic took maintain in the U.S.
The enhance in the variety of job postings, a real-time measure of labor-market exercise, has slowed dramatically since late July, and final week stood about 20% beneath 2019 ranges, in accordance with knowledge the job-search web site Indeed.com shared with The Wall Street Journal.
Job postings on the web site plummeted this spring when the pandemic hit. By May postings had been 33% beneath February’s prepandemic stage. But as states allowed many companies to reopen, demand for labor improved steadily via July, and in August postings had been about 12% beneath the early February stage. Since then, the stage of postings has largely plateaued and remained effectively beneath year-earlier ranges. February is usually a low level throughout the 12 months for hiring.
The job-postings knowledge comes as the financial system continues to dig out of the deep gap created by efforts to include the pandemic. The August unemployment rate fell to eight.4% and employers added 1.4 million jobs, however the labor market nonetheless had about 11.5 million fewer jobs than earlier than the pandemic. Consumer spending, a driving drive for the financial system, additionally grew over the summer season, rising in July for the third straight month. Growth, in the meantime, has picked up in the third quarter, economists say, following a steep second-quarter decline.
“There’s been pretty much a flat line in the job-postings trend since early August,” stated Indeed economist Nick Bunker. “While labor demand has recovered somewhat from the huge shock caused by the virus, we’re still below prepandemic levels.”