Surprising Job Growth in the Tech Sector
Despite recent reports of layoffs at major tech companies like Amazon and Twitter, the latest jobs report has revealed a different story. According to the Bureau of Labor Statistics, the overall economy added 263,000 jobs in November, surpassing economists' expectations. This hiring spree has kept the unemployment rate at a low 3.7%, while employers continue to compete for workers with increased earnings.
This continued demand for labor is notable, considering the Federal Reserve's efforts to cool down the job market and prevent inflation. Although average pay has risen by 5.1% over the past year, it remains below the current inflation rate of 7.7%. Fed chair Jerome Powell emphasized the need to restore balance in a job market that currently has more jobs than available workers.
Nick Bunker, head of economic research at Indeed Hiring Lab, warns against underestimating the U.S. labor market's momentum. Job growth in industries related to shipping and selling products has declined, while in-person services have seen significant gains as consumer habits shift post-pandemic. However, discrepancies between employer and household surveys in the report suggest potential challenges ahead.
