Loading...
Quintessential Careers Blog |
| Job Market Slowdown: What’s Going On? Posted: 14 Jul 2016 01:58 PM PDT Economic indicators suggest that our country is moving through a steady period of recovery following the downturn of 2008. At the same time, a job market slowdown is in our midst. You’ve probably heard reports about the job market slowdown. Don’t panic (yet). Let’s explore this situation.Recession recapAt the lowest point of the 2008 economic downturn, economic indicators across the board were dismal; in addition to the plunging housing market, the opportunities for workers and job seekers were minimal. To refer to it as a job market slowdown would not address the gravity of the situation. Wages had been stagnant for almost 10 years, hiring and business growth were down, unemployment rates were up, and the average job search took several months. In response to these and other metrics, the Federal Reserve made moves. The target interest rate dropped all the way to zero. Trillions of dollars were poured into the economy to boost flagging industries, support new ones, tackle infrastructure projects, and create programs that put struggling people back to work. These initiatives have paid off, and eight years later our nation is back on its feet — more or less. Businesses can grow and hire more workers. More open positions means lower unemployment rates and faster job searches. But the interest rate doesn’t have the same impact on salary averages, and only an indirect impact on open positions, so the reasons behind a recent stagnation in job growth can’t be easily explained.Temporary hiring slowdownIn response to a stronger economy and brighter indicators of growth and success in recent years, the Federal Reserve has been slowly raising interest rates, pursuing a philosophy of cautious optimism. And according to the Federal Reserve Chair, Janet Yellen, rates might increase in a few months. She assured the public that a gradual increase is best. This provides more room to maneuver (and drop rates again) if the economy needs more help in the future. But Dr. Yellen can’t explain why hiring and wage growth have slowed again this spring, right in the midst of a long and steady recovery. Yellen and most economic experts believe that this temporary dip in hiring will even out during the next several months and overall growth will stay on track. “We expect it will turn around,” says Dr. Yellen, “but we are taking a cautious approach to make sure that expectation is borne out.”Keep looking for workYes, we are experiencing a job market slowdown. This does not mean you should give up, however. If you’re looking for a job, keep looking. Here are Livecareer, we encourage optimism. We especially do this when the case for positivity is supported by numbers and a clear picture of the marketplace. Rejection can be discouraging, and a fruitless search for open positions can push job seekers to wonder when — and if — they’re likely to find acceptable work. But keep in mind that economic indicators are all experiencing a general upward trend that has remained steady (despite a few temporary dips) for almost 10 years. Stay confident and patient and ride out the ups and downs of the larger economy without losing focus on your personal goals. In the meantime, visit Livecareer for tips, insights, and resume help.The post Job Market Slowdown: What’s Going On? appeared first on LiveCareer Blog. |
| You are subscribed to email updates from LiveCareer Blog. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
Loading...
Loading...
