Has Warehousing Employment Peaked?
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This Week on Recruitonomics:
Have Warehousing Jobs Peaked?
Warehousing and storage jobs boomed during the COVID-19 recession recovery. Nationwide quarantine turned out to be the perfect environment for warehousing and storage employment to thrive in. However, the sun could be setting on the sector’s robust run of job gains. After two years of incredible growth, warehousing employment has plateaued, flattened by months of meager and sometimes negative gains. Employment levels in warehousing and storage could not rise forever, but the reasons it peaked this summer are hard to disentangle from one another.?
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Last Week on Recruitonomics:
The U.S. economy added 315,000 jobs in August, the headline of a jobs report that is sure to please the Federal Reserve. Moderating and below-forecast wage growth should quell fears of a wage-price spiral. Controlling wage growth is an important step in combating inflation, and today’s data suggests the economy is on the right path. Meanwhile, the unemployment rate increased to 3.7% from 3.5% – but for good reasons, as the labor force participation rate jumped strongly. Broad-based and resilient employment give hope that a “soft-landing'' may still be possible. The Fed will be carefully considering this reassuring report before their next rate increase later this month.?
Read the full article here.
What Recruitonomics is Reading:
Federal Reserve officials have been watching measures of wage gains closely to try to catch a wage-price spiral. Nominal wages have grown steadily post-recession, but so far it seems the spiral can be avoided. If price expectations become unanchored, wage growth may as well:?
“As the U.S. economy emerges from the pandemic, inflation has been highly elevated and labor markets have been very tight. In this environment, wage growth has also picked up. Our findings show that, since the pandemic, inflation expectations have been playing a more prominent role in wage-setting dynamics than in the past. Moreover, the influence of inflation expectations is being felt over a longer period of time. The longer inflation and inflation expectations remain elevated, the higher and longer-lasting the pressures on wage growth are likely to be,” write óscar Jordá, Celeste Lui, Fernanda Nechio, and Fabián Rivera-Reyes of the San Francisco Federal Reserve.?
?More Data & Insights:
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