Jobless Rate Hit All-Time Low but Not a Reason to Celebrate

jobless

Companies have been hiring a lot of people during the past month, making jobless people’s eyes gleam with hope. But they should not be too excited in printing resumes and submitting portfolios just yet according to economists.

Although there have been a lot of available jobs in the past month, people are advised not to get their hopes too high. This scenario has already been witnessed by economists and they think that it is just happening over again.

Increase in Job Hiring Only Temporary

Although many companies are hiring more people, which amounted to 288,000 jobs in the month of April, this is not really a good sign. These are caused by the delay in hiring of people since the start of year, which means that the increase in vacancies is only temporary.

  • Sharp Drop

After businesses have filled vacancies, after a long break from hiring people during winter, job vacancies will drop back to more disappointing figures. This means that the much awaited recovery of the economy is only false alarm, much to the dismay of everyone who needs a steady paycheck.

Even though more people have been hired by businesses, there is an expected drop in payrolls in the coming months, since businesses will be cutting back due to the recession hangover which is still affecting businesses these days. Also, baby boomers are retiring, which will result in the decrease on the labor force.

  • Drop in Labor Force

Even though there had been an increase in job vacancies in the past month, the work force has dropped, which indicates that people have dropped out of the labor force. This indicates that even though there was an increase in vacancies, more people are still unemployed.

But even though this may be the case, some economists think that if the job hiring will continue to grow steadily, the problem with unemployment will be lessened, creating for a better economy. Hence, more jobs can be filled and sustained by businesses. Also, part of the reason for the decrease in labor force are retirees, clearing up the issue of businesses not being able to sustain jobs but there are just a lot of baby boomers retiring from work.

  • Optimists See a Brighter Future for Employees and Job Hunters

Although a sheer drop in employment has been predicted by some economists, others are still being hopeful and are seeing growth in the coming months and years to come. Some economists think that job creation has been more stable than the past years, which is a good sign that businesses are also helping the economy on getting back on track.

Thus, more and more people will be able to find jobs from different businesses, which will make the overall jobless rate to steadily cease over time.

Economists want to warn job seekers regarding job opportunities that are posted by businesses that might fold over in the future. Nonetheless, due to the steady growth of job hiring, it is not impossible for this improvement to continue, making labor force to be better than ever since the recession.