Good news, graduates (and fogeys) – the May 2024 employment report is robust

The May 2024 jobs report showed remarkable strength, just in time for brand new graduates who were eager to move home. You have that graduate, you possibly can get a job and continue to exist your personal.

The Biden administration’s efforts to resolve supply chain issues are effectively slowing price increases, and employers are glad and assured to rent latest employees. The unemployment rate is 4.0% — the most effective measure of full employment there’s.

Other signals point to a robust economy. The proportion of unemployed people losing their jobs is lower – 48.7% — than before, and the proportion of latest entrants to the labour market who could be expected to stay unemployed for a while is rising, at 9.5%.

Graduates can have to look for some time, but signs suggest you will see a job quickly, especially should you work in the expansion sectors of healthcare, public administration, leisure and hospitality, and science and technology.

Employee confidence isn’t as high because it was before, but it surely was above average before. The share of “unemployed” in the whole variety of unemployed continues to indicate weakness and falls to 10.8% last January, well below the height of 15.3% in January 2022. Termination rates are stabilizing at a more normal level.

In a stronger economy, real wages rise

For the primary time for the reason that COVID-19 pandemic, firms are NOT
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Prices are rising faster than wages. Purchasing power is increasing.

Average weekly earnings For all private sector staff, wages in May were $1,197 per week, up 3.6 percent from a 12 months ago, while prices rose only 3.2 percent. Inflation is on the best way down.

Inverted yield curve signals stronger economy

Another sign of the strength of the economy is the inverted yield curve. straightening upWe used to fear that lower long-term rates of interest than short-term rates of interest (the inversion) was an indicator of a recession. New considering says that while inversions could be a cause for concern, if prices rise resulting from high consumer spending and the availability of products and services cannot sustain, the economy is robust.

Exactly where you would like an economy to be if you graduate.

Economic experts agree: Biden is steering a robust economy

Last 12 months 53% of economists People working for firms expected that there could be no recession until the top of 2024; now, over 75% of corporate economists are convinced that the economic track record of the Biden administration is especially strong considering that many economists – even those near the Democratic Party – expected a recession within the meantime.

You can gain lots of insight from a precious data set that New York Fed Consumer sentiment survey (don’t let the name idiot you – it’s about employees too). Expectations of receiving a number of job offers in the following 4 months have increased, as has the expected salary offer.

Advice for graduates

1. The perfect graduation gift? Time with an independent Financial Advisor. Learn the way to manage your student debt while saving for emergencies and retirement. Savings are a complement, not a alternative.

2. Behave perfectly within the interviewFocus on how you possibly can solve the potential employer’s problems, not on how they’ll solve yours.

I often are likely to be a pessimist, but the present economic situation also has many positive points. Good luck, graduates!