The One Trouble Spot In An Otherwise Great Job Market
By Eli Amdur
This is the greatest job market we’ve ever had. While we’re at it, let’s add a few adjectives: strongest, most consistent, most robust, most resilient, most inclusive, and so on. And you don’t have to worry about engaging in hyperbole. This job market is – and has been for the past four years – that good.
But nothing’s perfect. (Well, there’s always Beethoven’s 7th symphony.) Make no mistake, though, the American job market has never been this good – in all aspects – since it began being measured this way in 1939. Actually, the government started compiling data on labor in 1884, but today’s systemized measurements go back 85 years.
Never better.
So if it’s never been better but there’s something less than perfect, where’s the flaw? It won’t be found in the mountain of marquis data – job creation, unemployment rate, most commonly) – that many analysts throw around too easily while calling that a jobs report. So let’s go through this. (all data from Bureau of Labor Statistics.)
Job creation
- An eye-opening 240,000 last month, way surpassing expectations.
- 45 consecutive months of job growth.
- More than 16 million jobs created in one presidential term, by far a record.
- Jobs created in every job sector.
Unemployment rate
- 4.1% is historically low – and a very big deal.
- At or around 4.0% for 35 consecutive months is an even bigger deal.
Wages keep rising while inflation deflates
- Wages continue to rise by more than 4.0% annually, outpacing inflation at 2.5%.
Average job search is longer than we’d like
In a job market this spectacular, job searches are taking 22.6 weeks, in fact., up 0.7 weeks from a year ago.
That’s troubling.
As an independent career coach, I can confidently report that job listings and open jobs are plentiful and easy to find. Surprisingly good salaries are being offered, as are flexible work environments.
The lingering problem continues to be that employers are taking painfully long to make final hiring decisions. Speculations abound as to why, but that doesn’t matter. All you need to know is that it’s going on – and be prepared for it.
Other than that, jump in, the water’s fine.
