(Washington) More selective employers, candidates who take longer to find a job: some regions of the United States are seeing a slowdown in the labor market, but employment levels remain stable overall or even slightly up, a Fed survey showed Wednesday.
“Employment levels have remained broadly stable or have even increased slightly in recent weeks,” the U.S. central bank said in its “Beige Book,” a survey conducted in late July and August among businesses and economic players in the country.
However, “some regions reported that companies had reduced teams and hours, left advertised positions vacant […]even if cases of layoffs remained rare,” details this document.
Thus, the “Beige Book” specifies, “employers have been more selective in their hiring and less likely to increase their workforce, citing concerns about demand and uncertain economic prospects.”
“As a result, candidates faced increasing difficulties and longer delays in finding jobs,” and “as competition for workers eased and turnover declined, firms felt less pressure to raise wages.”
The unemployment rate rose to 4.3% in July. The August rate will be released on Friday, and is expected at 4.2%.
The fight against high inflation requires a slowdown in economic activity and, therefore, a deterioration in the employment market, while the United States has experienced three years of labor shortages.
“Cases of layoffs remain rare,” the Fed also notes.
It is preparing to start lowering rates, and should launch the movement at its next meeting, on September 17 and 18.
To counter the surge in inflation, which in 2022 was at its highest in more than 40 years, it raised its rates. These are currently in the range of 5.25 to 5.50%.