"The hiring rate in August was just 3.2%, a big drop off from the 4.6% rate in late 2021 as the economy was reopening. The last time hiring was consistently that low was in the early 2010s when the jobs market was still recovering from the Great Recession. The silver lining is that unemployment has remained relatively low, especially compared to the recovery from the Great Recession. But the unique setup of having both a low hiring rate AND unemployment still presents a few problems."
"First, it means people are staying put, or "job hugging." It's reminiscent of the current housing market, where homeowners who might want to sell their current home are refusing to do so because they're locked into an ultra-low rate. (Must be nice!) There are also the youngsters to consider. For those of us with a job, the Great Freeze is manageable, albeit annoying. But many recent college grads don't have that same benefit."
"Finally, there are the broader implications of what enables a low-hiring, low-unemployment environment to even exist. For some companies, the promise of AI efficiencies could be giving them pause about staffing up. If you're hoping to get some sympathy from the higher-ups, think again. CEOs are the one group that isn't holding onto jobs, writes BI's Tim Paradis. It's not all bad news. Some hiring is still taking place. And if anyone knows who is on the hunt for workers, it's recruiters."
The hiring rate in August was 3.2%, down from 4.6% in late 2021 as the economy reopened. The last time hiring was consistently that low was in the early 2010s during recovery from the Great Recession. Unemployment has remained relatively low compared with the Great Recession recovery, creating a rare combination of low hiring and low unemployment. Many workers are staying put, a phenomenon described as job-hugging, which resembles homeowners reluctant to sell because of ultra-low mortgage rates. Recent college graduates face tougher entry into the workforce, and some companies may delay staffing because of expected AI efficiencies. Recruiters remain active and a list of top US recruiting firms has been compiled.
Read at Business Insider
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