Slack Labor Market in Pictures

The headlines will go to the rising unemployment, but there's other interesting labor market news.

Not a surprise, but the number of workers voluntarily quitting is down. Folks are sticking with the devil they know (or at least the boss they know).

The slack labor market is reflected in modest wage gains:

Business Planning Implications: If you need talent, this is a good time to pick it up. Don't dawdle. Labor markets will tighten up next year.

Don't forget that we'll soon be entering the era of very slow gains in the labor force. The current slackness should not lead to poor employee retention behavior.

Comments

[Tom E.:]

When this recession is over will this be another jobless recovery? In the 2001 recession, companies used the opportunity to outsource and offshore everything. While GDP picked up, jobs did not which is why it was called a jobless recovery. There is no reason to think that this recovery will be any different. The high priced consulting firms are still telling corporate America to outsource and offshore everything. We may look back at the current state of the job market as the golden years. In the future it would not surprise me if unemployment reached 10% and one third of the workforce was forced into part-time or contractor status. Then even upper middle class will be complaining about being hollowed out.

2008 Aug 03 10:30 AM

[Jason Rines...:]

The Middle Class is already complaining about being hollowed out.

2008 Aug 03 11:11 AM

[notsosmart:]

its bs. the unemployment rate is app.10-11%.sorry no graphs or charts.just double all the bad news figures given out by the govt.& those with an agenda & you are close.

2008 Aug 03 11:34 AM

[BrunoT:]

"labor markets will tighten up next year"

Ok, care to base that on something? We could be in the midst of a severe recession by then according to several economics writers. I wasn't aware that those led to full employment and problems getting help.

2008 Aug 03 12:09 PM

[h2oworks:]

Have to agree with notsosmart. Those unemployment numbers never include folks whose unemployment has run out, nor does it include those who just stopped looking.

2008 Aug 03 05:18 PM

[bearfund:]

h2oworks, U-6 includes both. It's currently at 10.6% if I remember correctly. So notsosmart is right on if you want to include those. But you can't compare today's U-6 with yesterday's U-3 so I'm not sure how much good this does you really.

2008 Aug 03 08:20 PM

[quetzalcoatl:]

What is the unemployment rate for CEOs? It seems to me that their compensation should decline every time they cut a job. Let them take a 1% pay cut for every 1% they cut their labor force, and a 2% cut for jobs sent to a country with slave labor, sweatshops, or that is engaged in environmental degradation.

2008 Aug 04 07:04 AM

[Jason Rines...:]

Disagree Quetz. The CEO's that fail to perform should be fired. Period. Shareholders and investors will sue some former CEO's - and they should for negligence and fraud.

2008 Aug 04 05:44 PM