Employment Surges In April Despite Economic Uncertainty

The U.S. economy proved to be resilient by adding 253,000 jobs last month in a surprising increase, up from a 165,000 figure in March, according to the Labor Department. Surprisingly the labor market accelerates despite inflation, rate hikes, as employment surges in April despite economic uncertainty.

Since March, America’s financial system has been rattled by three of the four biggest bank failures in U.S. history. Leaving many worried that depositors will withdraw their money, leaving banks likely to reduce lending to conserve cash. Multiplied across the banking industry, this trend could cause a credit crunch that could slow the economy.

In April, employment continued to trend up in professional and business services, health care, leisure and hospitality, and social assistance. Professional and business services, a category that includes technical, management, and administrative roles, added a robust 43,000 jobs for the month. Health care added 40,000 new jobs while leisure and hospitality grew by 31,000 jobs, most of them in restaurants and bars.

Additionally, the unemployment rate was down to 3.5%, matching a six-decade low. April’s growth in total employment surged despite rising layoffs in the technology and financial sectors, suggesting that laid off employees are still finding new work with relative ease.

The labor Market is ‘Unstoppable’

According to economist Joseph Brusuelas, ”The American labor market right now is simply unstoppable, It’s a little like how sports commentators used to describe defending basketball great Michael Jordan: One can’t stop him, one can only hope to contain him.” And for job seekers and workers, that’s a great thing!

Several big tech companies, including Google and Amazon, have announced layoffs this year. Although such job cuts haven’t been widespread enough across the economy to boost the U.S. jobless rate, or the number of people applying for unemployment benefits. One reason is that many tech workers who were laid off have quickly landed new jobs.

Much of that job growth reflects continuing demand from Americans who have been increasingly venturing out to shop, eat out, travel and attend entertainment events, activities that were largely restricted during the height of the pandemic.

The demand for qualified candidates

Talent recruiting agencies are continuing to see a demand for workers. Applicants, not employers, still enjoy the advantage to attract and keep workers. Businesses, especially small ones, must remain competitive by offering flexible hours and the chance to work from home when possible. This allows schedule flexibility so that employees might finish their work late or early so that they can take care of children and other household responsibilities. These are the things that the modern employee needs. To not offer those benefits and to try to still have a 2019 business model of five days a week in an office is going to put employers at a disadvantage in finding and retaining top candidates.

360 Talent Avenue can help you find and retain top candidates. We are the trusted solution in talent acquisition, empowering businesses to succeed. 360 acts as an extension of your organization at every step. We can help with everything from candidate attraction all the way to new hire onboarding. Contact us today to learn more about our tailor made services.