US labor market sees increase in layoffs in March – Kommersant

Today, May 2, US Bureau of Labor Market Statistics reportedthat the number of staff cuts in March (1.8 million) increased markedly compared to February (1.6 million). The increase in cuts was noted in such areas as construction, hotel business and catering, healthcare and social security.

Also in March, the total number of new vacancies decreased – 9.6 million compared to 10 million in February. According to analysts interviewed The Wall Street Journal, such dynamics in the labor market in March was caused by a correction in demand for jobs in industries that were actively recruiting new employees during the COVID-19 pandemic (health and social security), as well as last year, immediately after the lifting of hard lockdowns (construction, hotel business and catering). At the same time, the reduction in the number of new vacancies was affected by a slower economic recovery after a significant increase in the second half of last year. However, the number of new vacancies in March still remains above the pre-pandemic level and significantly exceeds the number of official unemployed – 5.8 million.

“If the economy slows down, this leads to the fact that the market needs fewer new jobs,” Luke Tilly, chief economist at Wilmington Trust Investment Advisors, was quoted by the WSJ as saying. “But the general dynamics suggests that the business still experiences a significant need to hire employees.” .

Evgeniy Khvostik