Is the job market good or bad right now?
The case for and against
Welcome to two-sides Tuesday, where I argue against myself and everyone leaves more confused than when we started. Today I’m going to make the case that the job market is good right now. Then, I am going to refute that case.
Before we get started on this one, I’d like to clarify what I mean when I say whether or not the job market is good or bad. What I don’t mean is whether or not it is a good time to be an employee or an employer.
It’s most definitely a good time to be an employee (or a job seeker). That take, in my opinion, is supported by both sides of the argument below. What I am arguing is more about the health (or the status economically) of the labor market in the U.S. at the moment.
With that being said, let’s get started!
The Job Market is Good Right Now
The job market is strong and a source of strength for the economy. After all, the unemployment rate, the most popular job metric out there, is close to the lowest levels seen over the last twenty years:
And, despite some volatility due to the COVID shock, hiring has been on a steady positive trend for a long time:
Furthermore, there are a ton of jobs available, meaning companies want to hire and there are lots of jobs that need to be done:
Overall, the job market is strong and a bright spot for the economy as people who want jobs have them, hiring is strong, and there are lots of openings for anyone who wants to join the labor force.
The Job Market is Bad Right Now
While the job market has recovered from the worst of the COVID-crash bottom, the ratio of people who have jobs as a portion of the total population remains extremely low:
And, the ratio that tracks the number of people who are participating in the labor force who could be participating is in even worse shape:
Furthermore, there are a crazy high number of jobs available that aren’t being filled:
These metrics show that the job market is in bad shape as the economic engine cannot find workers to do the work that needs to be done to grow the economy!
Do you think the job market is good or bad right now? Let me know what you think by leaving a comment!
Links
Most Popular Posts | All Historical Posts | Main Site | EM100 | EM1000