Despite the Covid-19 coronavirus still being a potential threat, US employers have decided to ramp up their hiring efforts, resulting in over 530,000 new job opportunities over the course of October 2021. This is a sure sign that the recovery from the pandemic recession is overcoming the slow-down that has been induced by the pandemic.
According to a recent report by the US Labor Department, unemployment rate fell to 4.6 percent in the month of October, down 0.2 percent compared to September. While still far from the pre-pandemic levels of unemployment, this is still a relatively low number, and its downward trend paints an optimistic picture of the nation’s recovery.
Overall, the US economy seems to be on the right track in overcoming the Covid-19 induced recession, with a healthy boost in consumer spending prompting businesses in almost every industry to reinitiate hiring efforts to cope with the increase in demand. Despite the pandemic still causing severe supply shortages and a heightening inflation, employers are finding great success in filling vacant positions. This could likely also be an effect of the ‘Great Resignation’, as more talent are moving from one company to another, while those who have been left furloughed by the coronavirus are now re-entering the workforce.
The better than expected jobs report was also welcome news to Wall Street. According to most barometers, the economic recovery process is well on its way, with services such as retail, banking, and warehousing seeing a significant bump in sales. On the other hand, the nation is still short of about 4.2 million jobs to hit pre-pandemic levels of unemployment. Some demand is still being stifled as many are still hesitant to spend too much unnecessary time travelling, shopping, or eating out.
Employers who have been in fierce competition to fill roles from a fast depleting pool of talent have also decided to raise wages in order to offer a more attractive package. Average hourly pay has increase by almost 5 percent in October compared to the same time the previous year. Despite this, the recent surge in inflation means that such an increase in wages is only a minor benefit.
