Jobs Day Flowers
Hello and welcome back to the Recruitonomics Newsletter! This week, we’re breaking down the latest jobs report.?
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This Week on Recruitonomics:?
May Flowers Bring Job Power: U.S. Economy Beats Projections?
After a weaker jobs report in April, May’s data completely reversed the trend. The U.S. economy added 272,000 new jobs last month, far above market expectations of 150,000. The unemployment rate rose slightly to 4.0%, but this still marks the 30th month in a row of the unemployment rate being at or below 4%. If this trend continues throughout the summer into the fall, this record will exceed the 35-month record set during the economic boom of the Eisenhower administration.?Overall, the gap between supply and demand is gradually normalizing, as openings and hiring slow while more job seekers reenter the workforce.?
What does this mean for recruiters??
In this shifting market, it’s more important than ever to invest in actions that will bring about quality candidates. More and more, workers are sticking with their existing jobs – meaning it is easier to source candidates from the sidelines rather than poaching from other companies. This may mean approaching those less-experienced college graduates and Gen Z workers or restructuring expectations on the type of employee your role can attract.??
Read the full article here.?
The ECB Should Disregard High German Wage Growth… For Now?
The Eurozone has been plagued by stubbornly high inflation, even as the European Central Bank undergoes a tightening interest rate campaign to combat it. Recently, the ECB has been bothered by the persistent increases in inflation, but many of the factors pushing prices higher are temporary, brought on by local government measures to help their residents combat increased costs of living. They should not detract the ECB from focusing on the broader picture in upcoming interest rate decisions. However, one factor the central bank may have a harder time ignoring is recent wage trends across the Eurozone, especially in Germany. With increased worker bargaining power, wages have continued to grow strongly in various European economies, which could feed into higher inflation. The ECB should ignore these increases as well, though, as real wages (adjusted for inflation) have been largely depressed for some time. Rather than high wage growth, current inflation risks rather come from geopolitical events, increasing trade and shipping costs, and climate change, all of which are outside the ECB’s control. The ECB should not disregard factors like wage growth completely, but pushing interest rates too high, or keeping rates high for too long, to control for them may have more dangerous complications than they are prepared for. As the European Central Bank decided to cut interest rates for the first time since 2019 on Thursday, it seems it may have realized this.?
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What does this mean for recruiters??
Compensation will remain front and center for many job seekers due to the recent cost-of-living crisis. Nominal wage demands will remain historically elevated, at least for now. Do not expect a return to the period of subdued nominal wage growth that advanced economies experienced in the 2010s any time soon.?
Read the full article here.?
Recruiting Tips:?
The latest edition of the Appcast Brief featured Appcast Labor Economist, Julius Probst, Economic Data Analyst, Josh Previte, and Solutions Engineer, JC Perez. Julius broke down the latest jobs report in full detail, while Josh reviewed recent developments in the recruitment market, including CPA, apply rate, and CPC trends in key markets. JC took our listeners through the candidate’s journey to the hire and offered advice on how to stand out from the competition in today’s market. Watch the full recording here!
What Recruitonomics is Reading:
According to a recent survey from WTW, workers are more and more content to stick with their current employers rather than exploring other career options. After the “Great Resignation” of the past couple years, it seems that employees are deciding the grass is not greener, and we are soundly removed from the period of intense turnover following the pandemic. Survey respondents largely cited salary as reasoning behind the decision to stay, along with benefits like flexibility and health. For more information, read the full report here.?
?More Data & Insights:
Thank you for reading! Stay tuned for next week's Recruitonomics Newsletter and check out Recruitonomics.com for more data-driven insights.