The job market is continuing to change. Here’s what to know.
The U.S. Labor Department’s September job report showed that hiring is slowing down. This is being caused by a number of factors, including high inflation rates and rising costs.
Following the Great Resignation, people may be waiting it out to switch careers due to the uncertain times and companies are also cautious of how much they spend to hire someone new.
How do you stay on top of your job search during these times? If you guessed networking, you’re right! The Sum breaks down what you need to know about the current job market and things you can start doing, if you haven’t done so already.
To Sum It Up
- The September Jobs Report showed that the American economy added 263,000 new jobs, but the number is a lot less compared to July and August.
- Despite the new jobs, hiring has slowed down across many companies.
- As the Federal Reserve tries to lower inflation rates, you may see companies trying to save money through hiring freezes and company layoffs.
The Background
- Data says the percentage of people looking for work, known as the labor force participation rate, remained consistent from August at 62.3%.
- While 50% of active job seekers say they lack confidence in their current company, many are waiting to switch jobs.
- But complicating matters, people are hesitant to switch jobs as economists predict a possible recession.
What’s Happening
- Employers have less money to spend because of inflation, and the cost to borrow money to hire employees has increased, all leading to slowdown in hiring.
- There is still opportunity for people to change jobs, but it is a little harder than the glory days of 2021 as companies have hiring freezes.
Job Search Tips
- Set up informational interviews with people who work at a company you’re interested in or have a job title you want.
- Follow and network with recruiters in your industry or area on LinkedIn to learn when they open new roles.
- Recent graduate? Leverage your alma mater’s alumni networking resources.
Sources
Forbes: How To Prepare For The Massive Downward Shift In The Job Market
AP News: US job openings sink as economy slows, cost to borrow rises
Axios: The too-hot-for-comfort job market
READ MORE ABOUT THIS IN THE SUM
The Sum breaks down complex economic issues and how they impact your life in just a few minutes a day. Follow thesum.news on Instagram for the full story.
This story was originally published October 19, 2022 at 12:08 PM with the headline "The job market is continuing to change. Here’s what to know.."
