The number of job openings may be declining, but American workers still have the upper hand.
On August 19, the number of job postings on Indeed.com was down nearly 6% from the previous four weeks, but was still 50% above pre-pandemic levels, according to a study. new job site report. New job openings are up more than 60% from March 2020 levels, indicating strong demand for workers from employers.
Indeed’s data precedes the US Bureau of Labor Statistics’ Job Vacancies and Turnover (JOLT) report, due out today. In general, both reports move in the same direction, so the BLS data should also show the influence of workers on employers.
Still, the labor market could weaken in the short term if The US Federal Reserve continues to aggressively tighten financial conditions, Indeed economist AnnElizabeth Konkel said in a statement.
American workers demand higher wages
Workers are also becoming more ambitious about their salary expectations, according to searches on Indeed. $15-an-hour job searches, which were the most common before the pandemic, are now the least popular. Meanwhile, searches for jobs that pay $20 and $25 an hour have continued to grow.
And these searches may not reflect the salary requested by most Americans either. Annualized, $25 per hour it would be around $48,750But a recent survey of 1,300 Americans from the New York Federal Reserve showed that, on average, workers want to earn at least $73,000 a year, up 6% from a year ago.
US jobs report expected to be strong in August
The US will also report on job growth on Friday, part of a series of indicators that Fed officials will closely scrutinize to decide whether to continue the 75 basis point gains or cut them to 50 basis points next month. Most of the economists expect the economy to have added 300,000 jobs in August
After July’s unexpectedly strong jobs report, which showed the economy added 528,000 jobs, the Fed will be sensitive to labor market overheating, said economists at investment bank Credit Suisse.
“A moderate pace of job creation and a stabilization of the unemployment rate should allow the Fed to reduce its rate of increase to 50 bps, but the risks are skewed towards a more aggressive response if the data surprises to the upside,” they wrote. economists.