Employment Slowing: Could It be Just What the Economy Needs?
To many Americans, the news of slowed hiring may bring worries about the state of the economy. But, there may be more to this slowing than initially believed. Recent data shows that the national hiring rate has indeed slowed, but that this slowing could potentially be just what the economy needs.
First, it should be noted that a slower hiring rate does not necessarily indicate an economic downturn. According to the Bureau of Labor Statistics, the national hiring rate decreased by 0.4 percent in June from a year prior, with unemployment figures staying steady at 3.7 percent. While the number of new hires decreased, the number of unemployed individuals in the workforce remained unchanged. This suggests that rather than an economic downturn, the slowdown was due to businesses becoming more cautious about adding new personnel.
This slowdown could bring some positive effects. While it may forestall job creation in the short-term, it could also be a sign of employers becoming proactive to make sure they aren’t overburdened in the future. With labor costs continuing to rise, many businesses are taking steps to ensure they have the right personnel for the right amount of time at the right price. If businesses are slowing their hiring rates to ensure they can manage payroll costs, this could benefit the economy in the long run.
Slowed hiring could also give more jobseekers time to land the right job. With the slowdown in hiring, employers may have more time to invest in current applicants, meaning more jobseekers could receive training and experience, setting them up for more success in the future. Additionally, a slower hiring rate could give those seeking employment more breathing room, allowing them to hold potential employers to better standards and ensuring they have the best employment opportunities available to them.
It is important to note that employment uncertainty can cause worry for many Americans. But, while the slowed hiring rate could be cause for concern, it could also bring about positive change for the national economy. By taking a closer look at the statistics, it is evident that employers are taking caution in their hiring practices, which could likely provide long-term benefits for the job market.