The New York Times this morning writes that "by many measures, the labor market is still extraordinarily strong even as fears of a recession loom. The unemployment rate, which stood at 3.7 percent in August, remains near a five-decade low. There are twice as many job openings as unemployed workers available to fill them. Layoffs, despite some high-profile announcements in recent weeks, are close to a record low.
"But there are signs that the red-hot labor market may be coming off its boiling point.
Major employers such as Walmart and Amazon have announced slowdowns in hiring; others, such as FedEx, have frozen hiring altogether.
"Americans in July quit their jobs at the lowest rate in more than a year, a sign that the period of rapid job switching, sometimes called the Great Resignation, may be nearing its end. Wage growth, which soared as companies competed for workers, has also slowed, particularly in industries like dining and travel where the job market was particularly hot last year.
"More broadly, many companies around the country say they are finding it less arduous to attract and retain employees - partly because many are paring their hiring plans, and partly because the pool of available workers has grown as more people come off the economy’s sidelines."
- KC's View:
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Seems to me that companies would be well advised to remember, even as their staffing problems ease up, that these workers remain essential to the long-term viability and vitality of their businesses.
As a friend of mine reminded me yesterday, it isn't just employees in the broadest sense. It is each individual employee, who, if invested in the business's success and believing that the business is invested in him or her, can make the difference between success and mediocrity and failure.
