What is the Job Market?
The job market is where employers look for workers and workers look for jobs. The labor market is less of a physical place and more a concept that demonstrates competition and interaction between different workers. It is also referred to as the labor market.
The labor market can grow or shrink depending on the demand for labor and the available labor supply in the overall economy. Other factors affecting the market are the needs of a specific industry, the need for a specific level of education or qualification, and required job functions. The labor market is an essential part of any economy and is directly linked to the demand for goods and services.
labor market indicators
The Bureau of Labor Statistics (BLS) is a government agency of the United States Department of Labor. It is responsible for the collection, analysis and publication of US labor statistics. The statistics include employment and unemployment rates, turnover, vacancies, salary data, workplace conditions, etc.
The numbers can be used to show the state of the economy and the health of labor markets. The unemployment rate and non-farm payrolls are closely followed by the public as economic indicators.
The unemployment rate measures the amount of unemployed workers as a percentage of the total labor force. It is a lagging indicator that falls as the economy grows and rises as the economy enters a recession.
For example, as the economy faltered due to the COVID-19 pandemic, the US unemployment rate rose to an all-time high of 14.7% in April 2020. Although the unemployment rate is closely related to the business cycle in general, rates in different regions and industries may have different levels of sensitivity and lag times. It is also criticized that the quota does not differentiate between full-time and part-time employment.
The non-farm payroll measures the number of employees excluding farm workers and some government employees, non-profit employees and property owners. It represents the majority of the US labor force and is reported by sector.
The non-farm payroll information helps identify the expanding and contracting sectors. The expanding sectors appear to show larger increases in payrolls, while the shrinking sectors typically show slower increases or even declines in payrolls.
Example of a Job Market
According to the U.S. Department of Labor, Bureau of Labor Statistics total employment for non-farm payrolls rose by 528,000 for July 2022, and the unemployment rate (a lagging indicator) fell to 3.5%. Industries such as leisure and hospitality, professional and business services, and health care all saw job gains during this time.