Unemployment Rate Hits 4.3% as Fed Waits for Further Progress to Act on Interest Rates
As the U.S. labor market navigates through new economic realities, the unemployment rate has climbed to 4.3% in July, the highest level since early 2020. This increase coincides with the potential impacts of Hurricane Beryl, which struck Texas in early July. While the BLS employment situation summary reported ‘no discernible effect’ for July’s data, the BLS data series for “Employed – With a job, not at work, Bad weather” showed a significant uptick in workers not at work due to weather. Additionally, Japan’s recent interest rate hike further strains the global economy by increasing the cost of borrowing in Yen.
At Veritone Hire, we leverage data and market insights to help our clients stay ahead of the curve. Here’s a closer look at the current trends and actionable strategies for employers amidst this continuously evolving environment.
Key Labor Market Insights
In July, the U.S. unemployment rate increased by 0.2 percentage points, reaching 4.3%. This change corresponds to an additional 352,000 individuals becoming unemployed, bringing the total number of unemployed to 7.2 million. This marks a notable rise compared to a year earlier when the unemployment rate was 3.5% and 5.9 million people were unemployed.
Despite these overall increases, several sectors continue to show resilience despite challenges, as Vertione Hire saw a 6% increase in overall job volume from June to July.
Veritone Hire Sector-Specific Insights
Health Care: Consistent with BLS data, healthcare remains strong, with jobs increasing by 5% from June to July. CPA remained relatively stable, indicating sustained demand.
Logistics: Jobs in the logistics sector saw a substantial increase of 51% from June to July, rebounding in demand from the prior two years’ declines.
Customer Service Roles: Jobs increased by 16% from June to July, with CPA remaining relatively stable as demand for customer service roles is picking back up.
Manufacturing: This sector saw a slight increase in postings by 2% from June to July, with CPA remaining stable.
Strategic Recommendations for Employers
- Continuously Review and Optimize Processes: Significant changes can occur monthly. Regularly reviewing and optimizing your recruitment processes will ensure that your organization remains agile and efficient in responding to market shifts.
- Capitalize on a Larger Talent Pool: With rising unemployment rates, there is an opportunity to tap into a broader and potentially more skilled talent pool. Utilize AI and data-driven insights to identify and attract exceptional candidates effectively.
- Leverage Contract Hires Amid Budget Uncertainty: In an environment of economic uncertainty, utilizing contractors can provide the flexibility needed to manage budgets more effectively. Contractors can fill immediate needs without the long-term commitment associated with full-time hires.
- Monitor Global Economic Influences: The recent interest rate hike by the Bank of Japan signifies changes in global financial conditions. Stay informed about international economic policies that could impact borrowing costs and investment flows in the U.S. market.
Implementing sector-specific strategies in this market is crucial for success. Talk to your Vertione Hire representative for tailored strategies specific to your industry and business needs.
Further Reading:
Navigating a Rising Tide: Strategies for Employers as U.S. Unemployment Climbs
Job Application Tracking in a Cookie-less World
Wolfpacks and Minesweepers: The Real-World Inspiration for Veritone Hire’s AI Algorithms
Sources:
https://data.bls.gov/timeseries/LNU02007327