The American labor market is still full of concerns

The number of job offers has dropped, but is still higher than before the pandemic

During a recession, job openings decline and businesses lose jobs as economic activity shrinks. As the subsequent economic recovery takes shape, demand and sentiment are improving, prompting companies to expand their operations and hire more workers. During the recovery period, the number of people leaving work also increases as people look for better roles or better paid work. The opposite situation occurs during a recession.

Data from the Bureau of Labor Statistics’ job offers and employee turnover survey show that at least the rate⁵ job offers have fallen from the very high levels recorded at the beginning of the current economic recovery, and remain above pre-pandemic levels (Figure 1).⁶ Attrition rates, which have increased in 2021 and 2022, are now close to where they were before the Covid-19 recession in 2020. And despite all the reports of job losses, the overall rate of layoffs and furloughs in the economy is low and unchanged in over the last year and similar to what was just before the pandemic.

Data from the Job Opportunities and Turnover Survey also show that, overall, businesses in the economy continue to hire at a healthy rate. The employment rate of 3.8% in March 2024 is slightly lower than in the first two years of the current recovery, but is still comparable to pre-pandemic rates. Overall, these trends show that the labor market remains strong with a healthy mix of job openings, hirings, layoffs and layoffs, with no indication of any impending problems.