While November’s numbers would suggest the labor market could stomach an elongated stay in high interest rates, the Federal Reserve should avoid taking too much stock in its current performance rather than its future direction. A genuine soft landing will only be realized when the labor market is experiencing genuine growth rather than dancing on the edge of stability.
Overall, markets responded favorably to last week’s labor numbers, and understandably so. After $2 billion hurricanes coupled with massive labor strikes in October, the sheer drop in labor market activity suggested by last month’s data was hardly reflective of actual conditions. And last week’s data proved just that. Job openings rose above consensus expectations by 7.7 million, quits increased by 2.1%, their highest level since May. Hourly wages continued to surpass inflation in growing by 4% year-over-year, while nonfarm payrolls rose by 227,000. These levels themselves suggest that the labor market remains on solid ground as they exceed normal benchmarks for growth.
Yet, the same cannot be said about trends within the labor market: 7.7 million job openings is the second-lowest level recorded since February of 2021. Hires, or the number of people filling these roles, is at its lowest recorded level since November of 2016. Although hourly wages are rising at a healthy pace that is outpacing core inflation, interest rates remain elevated at 4.6%, while the first cuts enacted in September have yet to permeate the labor market at large. Over the past year, the average three-month growth in nonfarm payrolls has declined by 41%, while the unemployment rate has risen from 3.7% to 4.2% suggesting continued, though sluggish momentum, toward suboptimal levels.
Like a ship with a small crack in its hull, labor market activity is healthy but trending in an unhealthy direction. Currently, the Federal Reserve is poised to enact another rate cut in December, and switching gears to additional reductions at every other meeting. While November’s numbers would suggest the labor market could stomach an elongated stay in high interest rates, the Federal Reserve should avoid taking too much stock in its current performance rather than its future direction. A genuine soft landing will only be realized when the labor market is experiencing genuine growth rather than dancing on the edge of stability.
Staffing firms can best attract and retain temporary workers by understanding and addressing key motivators such as competitive pay, potential for permanent employment, and commute logistics.
A recent survey from the Adecco Group explores the perspectives of nearly 500 associates placed in the field by the company. The published findings shed helpful light on the motivations of temporary workers in the field in 2024.
Half of associates feel stressed about not being able to cover basic expenses on a daily (38%) or weekly (13%) basis. With this concern, more than half (53%) of respondents indicate pay is the most important factor when looking for a new temporary job. Of those who abandoned a job during the hiring process or before their first day, 54% did so because they received another job offer with higher pay. Temporary work is the only source of income for 70% of the associates who answered the survey, so competitive pay is impactful.
Pay is not the only motivating factor for temporary workers, however. Aside from pay, the ability to become permanent (37%) was the next most important factor that attracted temporary workers to accept a job, followed by location or commute (29%). Nearly seven in 10 temporary workers commute five days in the average week, with 20 miles being the average one-way distance. Only 14% of workers were employed on a fully remote basis.
Staffing firms can best attract and retain temporary workers by understanding and addressing key motivators such as competitive pay, potential for permanent employment, and commute logistics. Understanding a worker’s preferences in this regard can help recruiters win the battle for talent and build lasting relationships with candidates.
