While the inflation rate is no longer at an all-time high, Americans are still feeling the pressure with 1 in 3 U.S. employees unable to meet basic needs and a growing number of employees tightening their benefits budgets as a result of rising costs.
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Film Industry Entrepreneur & COO- Serving the film and television industry and contributing to the economic growth of our community. - Multiple Industry Business Development Leadership Experience - USMC & USAF Vet
Increasing labor supply grows the economy A growing labor supply has several economic benefits. First, it can help bring down inflation over the medium term without causing an economic downturn. Greater employment opportunities at a time when employers need more workers would help ease supply-side bottlenecks caused by workforce shortages. Furthermore, growing the labor supply today is critical for addressing the potential future challenges that result from demographic changes, particularly an aging population. By increasing labor supply, policymakers can help reduce inflationary pressures over the longer term. Second, growing the labor supply can expand the economy’s productive capacity. Faster productivity growth means that workers achieve more in the same amount of time as they did in the past. This not only reduces inflationary pressures but also makes it easier to address looming challenges such as climate change, aging infrastructure, and the health care needs of an aging population. Research has shown that more diverse perspectives make it easier to address complex problems in business and the economy. Therefore, a diverse pool of employed people can generate faster productivity growth. For example, one study found that among 700 people working in groups of up to five, those groups with more women were better able to solve tasks, signaling the importance of gender diversity in the workforce.
Investing in Workers Can Further Ease Inflation and Boost Economic Growth
https://www.americanprogress.org
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"US worker productivity grew 3.2% in the fourth quarter, surpassing expectations for a 2.1% gain, according to a Bureau of Labor Statistics report released Thursday. "That's a key piece of data, since productivity growth can help reduce inflationary pressures. "More good news for American households came in the wage growth data released Friday as part of the jobs report. While the estimated 4.5% annual hourly earnings growth may trigger a dull headache for the Federal Reserve, it’s ultimately good for the American psyche. “It’s about jobs, and it’s about what people make, and this data reflects the increase in productivity. Improved productivity leads to improved number of jobs, better pay and rising living standards. It’s that mythical tide that lifts all boats.” "Diane Swonk, chief economist of KPMG, told CNN this week that rising productivity could likely be attributed as a result of the interest rate hikes and the labor market getting back into better balance following the pandemic recovery." #useconomy #jobs #wages
Live updates: Another shockingly good jobs report shows America's economy is booming
cnn.com
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"By outward appearances, the labor market today looks much as it did before the pandemic. The unemployment rate is just as low, the share of adults in the labor force is just as high, and wages are growing at roughly the same pace after inflation. But beneath the surface, the nature of labor has changed profoundly. Career and work aren’t nearly as central to the lives of Americans. They want more time for their families and themselves, and more flexibility about when, where and how they work. The impact of this change can already be seen in both individual companies and the broader economy. It has led to a persistent shortage of workers, especially in jobs that seem less desirable because, for example, they require in-person work or fixed hours. That, in turn, has altered the bargaining position of employers and employees—forcing employers to adapt, not just by paying more but giving priority to quality of life in job offers. To be sure, some of these changes arise from an exceptionally tight labor market. If unemployment rises, some of employees’ newfound leverage may evaporate. But some will endure. Historically, the fruits of economic growth are split between capital and labor, with labor taking some of its share in the form of amenities: less hours, more benefits, safer, more-pleasant work conditions. Those amenities are increasingly central to the labor market of today, in what employees expect and what employers must offer. Popular expressions like “quiet quitting” or “work your wage” capture these new attitudes, often directed at Generation Z—those born between the late 1990s and early 2010s. “They’re really annoying, especially in the workplace,” actress Jodie Foster told the Guardian. “They’re like, ‘Nah, I’m not feeling it today, I’m gonna come in at 10:30 a.m.’ ”
Americans Don’t Care as Much About Work. And It Isn’t Just Gen Z.
wsj.com
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Construction Specialists: Helping Construction/Manufacturing/Trade Businesses Optimize Their Greatest Asset - Their PEOPLE, Increase Productivity and Drive Top Line Growth |
New research shows while the unemployment rate is near record lows, people may be working fewer hours each week. In this episode of MainStreet Macro, ADP Chief Economist Nela Richardson explains this new trend and the groups of workers driving this shift. For more insights, go to https://www.adpri.org.
MainStreet Macro: Are we working less?
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Human Capital Management Consultant at ADP - Helping small to midsize businesses reduce and stabilize operating costs when it comes their biggest expense, liability, and asset— their employees
New research shows while the unemployment rate is near record lows, people may be working fewer hours each week. In this episode of MainStreet Macro, ADP Chief Economist Nela Richardson explains this new trend and the groups of workers driving this shift. For more insights, go to https://www.adpri.org.
MainStreet Macro: Are we working less?
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The U.S. Labor Market Post-Covid: What’s Changed, and What Hasn’t? —louise sheiner, David Wessel, and Elijah Asdourian at The Brookings Institution outline lessons policymakers should take from this unusual period. • What caused inflation to spike in the wake of the pandemic and then to subside without an increase in unemployment? • What lasting impact, if any, will the pandemic have on U.S. labor markets? • How sustained will the work from home trend be? See the report and full summary here: https://lnkd.in/gEcTCgmu
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New research shows that while the unemployment rate is near record lows, people may be working fewer hours each week. In this episode of MainStreet Macro, ADP Chief Economist Nela Richardson explains this new trend and the groups of workers driving this shift. For more insights, go to https://bit.ly/3VkyGx7
MainStreet Macro: Are we working less?
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How’s the US labor market looking these days? In a word, chill. Employers aren’t as hungry for new workers as they used to be. On Tuesday, the government reported that hiring once again dipped in June, hitting its lowest level since the country began recovering from the pandemic. At the same time, not many Americans are losing their jobs. Last month the rate at which individuals were fired or laid off fell back to its all-time low. People aren’t bailing on their bosses with abandon anymore, either. The rate at which workers quit their jobs inched down too in June, and has now returned to a point last seen in 2018. Tuesday’s numbers are the latest reminder that the country has long since exited the era of the Great Resignation, when furious competition to staff up after the pandemic led to mass job hopping. Instead, it has entered a period of low turnover some have dubbed the Great Stay, where fewer workers are being hired, fired, or striking out for a new opportunity. The question on the mind of many economists is how long this unusual balancing act can last. It’s possible that the low rate of churn is simply a sign that the country has reached a relatively stable state of full employment. But the continued slowdown in hiring has left some worried that the US could be on the edge of a more dramatic downturn as the high interest rates that the Federal Reserve has kept in place to fight inflation continue to bite. As Nick Bunker, the director of macroeconomic research at Indeed, put it on X: “‘Limited hiring, limited firing’ could be a new equilibrium, but at some point, hiring needs to level off. Unfortunately, we aren’t there yet.” Guy Berger, director of economic research at the Burning Glass Institute, described the recent combination of declining hiring and layoffs as “really weird.” Typically, you expect those two indicators to move in opposite directions, as businesses either step up their recruiting in anticipation of strong growth, or trim their workforces in anticipation of recession. “It makes you a little more worried about whether we’re entering a late 2007 or late 2000-type scenario where we’re not in a recession, but not too from what could be a recession,” Berger said. That uncertainty will likely be on the minds of Fed officials as they meet on interest rates this week. Chair Jerome Powell has said that he and his colleagues wanted to see more data indicating that inflation was cooling before committing to rate cuts, but acknowledged in recent testimony before Congress that they are newly concerned about risks to the labor market. Some worry that the Fed has already waited too long. Overall job growth has slowed with hiring in recent months, while the unemployment rate has risen. “It’s not time to cut rates. It’s past time to cut,” Economic Innovation Group Chief Economist Adam Ozimek said on X.
US labor market reaches unusual balance between hires, fires, and quits | Semafor
semafor.com
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Textile Division - Head of Soft Accessories Business Unit | Head of Sales Yarns | Strategy & Business Development Manager at Loro Piana (LVMH Group) | MBA
Labour productivity in the US has grown much faster than in the EU. Why has this happened? The figures show that in the four years from the end of 2019, real output per hour worked in the US non-farm business sector rose 6.4 per cent. Employment increased 4 per cent, while average hours fell 1.3 per cent — for a total expansion in output of 9.2 per cent and output per worker rising by about 5 per cent. How much of this was due to manufacturing, the sector that gets so much attention? Factories only employ one-tenth of the whole non-farm business sector, so they need outsized productivity growth to move the aggregate needle. But as it happens, manufacturing has been no success story in the post-pandemic recovery. Labour productivity only grew 0.9 per cent in four years, and even that meagre gain was offset by a fall in total hours worked. The biggest productivity jumps took place in information services (media, telecoms, data processing) and professional services, where real value added per worker leapt by 30 and 15 per cent respectively. Most other service sectors largely held up the all-economy productivity growth rate, with significant exceptions in wholesale trade and transportation/warehousing. The sector with the fastest output-per-worker growth may not, of course, be the greatest contributor to the overall productivity performance, if the sector is not very big: information services employ less than 2 per cent of workers. The productivity surge happened above all in knowledge-intensive industries: professional and business services, education and health, and information services. These are, of course, the ones that can most easily exploit remote-working technologies. They also seem to be the ones that have added the most to their physical capital stock. So investment works and markets respond to demand. Who would have thought? #us #europeanunion #europe #productivity #gdp #employment #unemployment #analysis #manufacturing #services #ai #future #trends
Understanding America’s productivity boom
ft.com
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A recent survey by the American Staffing Association and The Harris Poll revealed that 53% of U.S. adults feel their pay isn't keeping up with inflation. With 38% stating their financial stress has increased in the past year, these findings underscore growing economic pressures. Amidst these challenges, it's encouraging to note that finance leaders are planning raises to outpace inflation in 2024 (source: HR Dive). This proactive approach highlights a potential avenue for relief (and employee retention) amidst inflation concerns. #employeeengagement #salarydata #outsourcedhr #employeeretention
Gartner: 71% of finance leaders plan for raises to outpace inflation in 2024
hrdive.com
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