Those who invest in stocks are asking themselves how the upcoming Jobs Report will affect the markets. This is a very valid question, as the country has experienced relatively poor job growth in the past couple of months.
Even though there over 160,000 jobs in the private sector were created in July, this doesn’t mean that the economy is growing or that job creation will now start booming again. Many individuals remain underemployed, being forced to take jobs that pay far less than what they’re qualified for, as they are unable to find decent work in their area of expertise.
Some experts, such as Cooper Howes at Barclays, have made a few predictions about how the job market is going to fare this month. The unemployment rate, currently hovering around 8.2% nationwide, is expected to remain unchanged for the time being. The average amount of hours worked per week is expected to remain the same and average hourly wages are expected to grow, but only very slightly by about 0.2%.
This shows that those who predicted that the country would be soon emerging from the effects that the recession had on the job market are unfortunately mistaken. Job growth is low and there isn’t an end in sight.
Poor job growth has an impact on the markets as well, which is why investors are carefully monitoring the situation. Many are wondering whether the Federal Reserve will step in to provide a boost to the nation’s economy, but this is not certain to happen soon. If the Fed does step in, this could stimulate the economy and cause stock prices to rise, giving companies the encouragement they need to start hiring again.
Job growth is something that has been on the discussion table for nearly 4 years now. Ever since the recession hit, there have been millions of people around the nation hoping that the situation would turn itself around and that they would be able to return to work soon. However, even though the economy has recovered somewhat, there still needs to be a lot done in order to return the country to its previous economic conditions.
We should look at the industry sectors that are having the slowest job growth and examine why these businesses aren’t hiring more qualified workers. Short term solutions and immediate actions need to be implemented a reduction of the unemployment rate is to be seen. Rather than cutting down on costs by sending more and more jobs overseas, companies could focus on what they could do to attract new talent domestically. While there might be a shortage of qualified workers in certain specific sectors, that is not the case for the majority of industries, and there are plenty of people who are now unemployed or working in a position that is unrelated to their true talents who would love to have the opportunity to find work again.
This article was written by Darren Creasey, a college career counselor who for five years has been getting graduates the information they need to get the jobs they want, as well as issuing Tests for Employment and job aptitude tests. When not giving career advice, Darren fishes, rock climbs, and is an avid theater-goer.No tags for this post.