US employers added 850,000 jobs in June, much higher than the average of the previous three months, indicating that it may be easier for companies to find enough workers to fill open positions.
A report by the Department of Labor is the latest evidence that the reopening of the economy is bouncing back strongly from the pandemic recession. The visitors in restaurants across the country have almost recovered to the level before the pandemic. More people have begun to shop, travel, and participate in sports and entertainment activities. The number of people flying every day has recovered from pre-COVID-19 levels by approximately 80%. American’s confidence in the economic outlook has almost completely recovered.
The report also shows that American workers enjoy an advantage in the job market because the company is eager to increase labor and pay higher wages in a booming economy. In June, the average hourly wage increased by 3.6% compared to the previous year, faster than the annual growth rate before the pandemic. In addition, more new employees are getting full-time jobs because the number of part-time employees who like to work full-time has declined, which is a healthy sign.
Joe Brusuelas, the chief economist at RSM, a tax advisory firm, said, “There’s increasing confidence that they’re going to get better jobs at better wages as the U.S. economy expands. this underscores the growing bargaining power of labor.”
In a speech at the White House, President Joe Biden promoted the job gains and recommended that his economic policies, including the $1.9 trillion financial aid plan announced in March, are proposed to make it easier for workers to find better jobs.
“The strength of our recovery is helping us flip the script“, Biden said. “Instead of workers competing with each other for jobs that are scarce, employers are competing with each other to attract workers.”
The number of job gains has been robust in Republican-run states, where governors have moved to remove a $300-a-week federal unemployment payment to prod more people to search for jobs.
According to the report, the unemployment rate rose to 5.9% in June from 5.8% in May. Despite robust growth in the labor market, the unemployment rate is well above the pre-epidemic level of 3.5%, and the economy is still $ 6.8 million below the pre-pandemic level.
Some employers offer signing and loyalty bonuses and more flexible working hours, especially as competition is sterner between restaurant workers, tourists and entertainment establishments. Job websites have unequivocally confirmed that the percentage of job openings with promised bonuses has more than doubled over the past year.
Source: Raleigh News & Observer