Posted BY: | NwoReport
The U.S. job market has seen a notable shift in recent months, with a surge in part-time employment and a decline in full-time positions, as reported by the Bureau of Labor Statistics (BLS). Since June, the number of full-time jobs, characterized by working more than 35 hours per week, has decreased by 670,000, while part-time employment has surged by over a million, according to BLS data from August.
This trend is causing concern among experts, as it often signifies economic instability, especially heading into a potential recession. E.J. Antoni, a research fellow at the Heritage Foundation’s Grover M. Hermann Center for the Federal Budget, pointed out that a shift towards part-time jobs is a common response from employers in economic downturns.
Another troubling aspect is the stagnation in the manufacturing sector, which is typically a significant indicator of the broader job market. In August, manufacturing added only 16,000 jobs, following a loss of 4,000 jobs in July. Since January, the sector has seen a mere 12,000 job increase, suggesting a lack of growth and potential trouble ahead.
These developments align with various surveys indicating a slowdown in the labor market and the broader economy. The Federal Reserve regional bank surveys and private surveys have consistently pointed to a deceleration in economic activity. In August, most job seekers struggled to secure full-time positions, exacerbating concerns about job availability.
Furthermore, the BLS report included revisions that lowered the number of jobs added in both June and July, indicating a softer job market than initially reported.
In a separate sign of economic deceleration, the real Gross Domestic Product (GDP) for the second quarter of 2023 was revised downward from 2.4% to 2.1%, further highlighting the challenges facing the U.S. economy.
In conclusion, the U.S. job market is showing worrisome signs of a shift towards part-time employment, coupled with a lackluster manufacturing sector and downward revisions in job data. These indicators, along with a revised GDP growth rate, suggest a potential economic slowdown on the horizon, raising concerns about the overall health of the U.S. economy.