U.S. employers posted fewer jobs in May, signaling a weakening economy despite the fact that job openings continue to remain at high levels.
The number of hires remained “little changed” at 6.5 million and the hires rate was “unchanged” at 4.3 percent. The number of total separations—including quits, layoffs, and discharges as well as other separations—was “little changed” at 6 million. The separation rate remained “unchanged” at 3.9 percent.
For the 12 months ending in May, hires came in at a total of 78.4 million while separations totaled 72 million, resulting in a gain in net employment of 6.4 million.
Experts are closely watching for signs of cooling in the labor market as it could bring down inflation. As there are many job openings, companies have been raising pay in a bid to retain workers, which, in turn, has contributed to pushing up inflation during the past months to four-decade highs.
Recession and Jobs
Recession remains a major worry in the job market. A survey by Insight Global found that 78 percent of American workers are worried about their job security when the next recession hits, with 23 percent admitting to being “extremely worried” about losing their jobs. Managers were found to be more worried about losing their jobs than non-managers.Top companies have been cutting back on jobs in recent months. Tesla laid off around 200 workers, while Swiss drugmaker Novartis may cut around 8,000 jobs. Due to high inflation, many companies are finding it difficult to pass on the extra costs from raw materials and labor to customers.
Around 60 percent of CEOs who were polled about the potential of an upcoming recession said that they are expecting it within the next year to 18 months.