Our AI writing assistant, WriteUp, can assist you in easily writing any text. Click here to experience its capabilities.

The Great Shift? As job openings, quits taper off, power shifts from workers to employers

View Original View Raw

Summary

This article discusses how the job market is cooling down, shifting bargaining power back to employers and resulting in smaller pay increases for workers. Job openings and quits rates are both decreasing, and the trend is particularly noticeable in lower-wage sectors such as restaurants and retail. Employers are also taking longer to hire, and are increasingly looking for more qualified candidates. Despite these changes, the job market is still skewed in favor of workers in certain industries, such as health care.

Q&As

Is the job market shifting to give employers more negotiating leverage?
Yes, the job market is shifting to give employers more negotiating leverage.

Are job openings and quit rates decreasing?
Yes, job openings and quit rates are decreasing.

Is wage growth slowing?
Yes, wage growth is slowing.

What is the impact of the pandemic on the workforce?
The pandemic has caused millions of Americans to leave their jobs due to child care duties, health concerns, or a cash cushion built by federal stimulus checks. At the same time, more Americans are gradually returning to the workforce.

Are college graduates more likely to get hired now?
No, college graduates are not more likely to get hired now.

AI Comments

👍 This article provides a great overview of the current job market and how it has shifted from workers to employers. It also provides an interesting perspective on how college graduates are struggling to find jobs and how employers are taking advantage of the current market to hire more qualified employees.

👎 This article fails to address the impact that the shift in bargaining power has had on workers, especially those in lower-wage sectors. It also ignores the fact that savings accounts now offer higher rates of interest yet most people are not taking advantage of them.

AI Discussion

Me: It's about how the job market is cooling off and how this is shifting negotiating power away from workers and back to employers. It looks like wages are going to start slowing down soon, and employers are being more selective when it comes to job applicants. It's going to be harder for people to get the raises they were used to before the pandemic.

Friend: That's interesting. It sounds like employers are taking back control of the job market.

Me: Yeah, it looks like they are. With fewer job openings and more people returning to the workforce, qualified applicants have more competition for jobs and employers have more leeway to set the terms. This could be bad news for people hoping for big pay raises, but it might help to ease inflation and encourage the Fed to keep rates low. It's a double-edged sword.

Action items

Research the current job market in your industry to understand the current balance of power between employers and employees.
Take advantage of online resources to stay up to date on the latest job openings and salary trends.
Develop a strategy for negotiating salary and benefits when applying for a new job.

Technical terms

Job Openings: The number of job vacancies available in the labor market.
Quits: The number of people who voluntarily leave their jobs.
Bidding War: A situation in which multiple employers compete to hire a worker by offering higher salaries and other incentives.
Negotiating Leverage: The ability of a worker to negotiate a better salary or other benefits.
Signing Bonus: A one-time payment given to a new employee as an incentive to join the company.
Job Switchers: People who switch jobs.
Counteroffer: An offer made by an employer to a worker in response to a job offer from another employer.
Recruited: To be actively sought out and hired for a job.
Great Resignation: A phenomenon in which millions of workers left their jobs during the pandemic for better pay and benefits.
Return to the Workforce: The process of people returning to their jobs after the pandemic.
Job Hopping: The practice of frequently changing jobs.
Quits Rate: The percentage of people who voluntarily leave their jobs.
Employment Cost Index: A measure of the cost of labor, including wages and benefits.
Federal Reserve: The central bank of the United States.
Moody's Analytics: A financial services company that provides economic research and analysis.
White-Collar Job Placement: The process of finding and filling professional positions.
Express Employment Professionals: A staffing firm that specializes in white-collar job placement.
Digital Marketing: The use of digital technologies to promote products and services.
Ghosting: The practice of abruptly ending communication with someone without explanation.
AtlasJobs: A company that sells technology to recruiters.
Survival Frog: A company that sells canned meat, masks, and other accessories for crisis preparedness.