America’s Jobs Market Has Entered the Twilight Zone
Companies aren’t so worried that they’re letting a lot of people go, but they’re also not so confident that they’re hiring a lot of people.
A rare sight these days.
Photographer: Joe Raedle/Getty
The strong gain of 254,000 jobs in September was a welcome surprise after months of cooling in the labor market and reinforced other signs of strength in the US economy. However, one month does not make a trend, and even with the Federal Reserve cutting interest rates, a sustained turnaround in hiring will take time.
In the latest figures from August, the rate of new hires — that is, new workers as a percentage of total employment — fell to 3.3%. This is comparable to what it was in 2013, when the unemployment rate was more than 7% (It is currently 4.1%)[CS1] Yet, layoffs remain low.