Job market remains ‘hot’ for workers in latest JOLTS report

Despite recent headlines High profile layoffs Amid the looming recession, the job market continues to be “hot,” said Julia Pollak, chief economist at job site ZipRecruiter.

The labor market posted 11.4 million job openings in April, according to the latest Labor Department data Job Openings and Workforce Mobility Summary —Almost double the number of unemployed job seekers. The big resignation a year later is as strong as ever, with 4.4 million voluntarily quitting in a month.

Meanwhile, layoffs hit a record 1.2 million in April, compared with about 2 million monthly layoffs by employers before the pandemic.

Another way to show how employees are taking advantage of the market: At the beginning of 2020, about 40% of exits were initiated by employers. Now, that number is just 20%, and those who quit are moving to new jobs with better pay, benefits and working conditions.

Overall, Pollack told CNBC Make It that the job market remains “very resilient” even as fears of layoffs, inflation and recession loom.

“The labor market is huge, and you can always find exceptions to the rule,” Pollack said. “But the rule is, we’re in the tightest labor market on record.”

High-profile layoffs are the exception to the rule

In recent weeks, including Uber, Microsoft, Twitter, Wayfair, Snap and Facebook parent Meta Hiring slowdown announced Or freeze, while others like Netflix, Peloton and Carvana point to sluggish consumer demand and high inflation as justification for the new layoffs.

However, the layoffs and hiring freezes in a small part of the labor market did not appear in the totals, Pollack said. Demand for skilled workers remains high, and Pollack expects those laid off will soon be snatched up by recruiters.

Pollak added that the recent tech layoffs are noteworthy, but don’t reflect the bigger picture of consumer demand recovering from pandemic lows.

“Away from Silicon Valley and Wall Street, Main Street is strong,” she said. “Restaurant dining, air travel and hotel stays are soaring. We are seeing a return to business travel, major events and concerts. Much of the country is struggling to rearrange and retain staff to meet this demand.”

Workers get more money, training

Workers are continuing to use their “enormous bargaining power” to get better jobs in today’s market, Pollack said.according to a ZipRecruiter Survey Of those who started a new job in the past six months, 41% gained more scheduling flexibility and 14% gained the ability to work remotely in their new role.

Job-hoppers typically see the highest wage increases, but Pollack said a growing number of people are getting pay raises in today’s market, including jobseekers, public sector workers and unionized workers renegotiating contracts.

according to ZipRecruiter’s May Index When measuring job seeker confidence, half of working job seekers said they believed their current employer would offer more to stay if they quit.

Some companies are proactively raising pay to avoid these resignations.Google, Amazon, Microsoft and Apple Salary raise recently announced to retain and attract talent.

Others are lowering their hiring requirements, such as years of experience or education, to expand their talent pools, which Pollack said could benefit historically marginalized workers, including women and people of color. “In these extremely tight labor markets, employers have become less discriminatory because they desperately need talent, and they are opening their doors to candidates they may not have seen before,” Pollack said.

These employers may also invest in more training, management development and mentoring.

Overall, employers filled only 58% of job openings in a given month. “Even when companies struggle when input prices rise or demand is disrupted, they retain their valuable employees because they know how much it will cost to replace them and how long it will take,” Pollack said.

Is a recession imminent?