The job market is slowing down as the number of people seeking work increases

Rudy Tomarchio has been looking for a job for three months — and says time is running out before he'll deplete his savings.

Rudy Tomarchio, who has been searching for a job since three months ago, says that he is in a race against time before he depletes his savings.

The Miami resident, 37 years old, is seeking a managerial role and realizes that his current situation is probably limiting him.

Tomarchio, who is confident that his job search will soon be over as he moves into the final stages of interviews, has expressed surprise at the number of other applicants for the same positions as him and the stinginess with which employers have hired.

He said that the hyperspecialization required by many positions is making it difficult for job seekers, including himself.

The job losses of the last year continue to echo, even though the U.S. rate of unemployment is at historic lows.

Unwanted reversal

LinkedIn data shows that there are two applicants on average for each job advertised. This is a reverse of the peak post-pandemic seen at the end 2022 when there was only one job applicant for every role.

The U.S. Labor Department reported that at several points in the past year, there were two times as many job openings for every applicant. This means that for each person who was looking for work, at least two opportunities existed.

LinkedIn has a much higher ratio of applicants for some positions than the 2:1 ratio that is currently indicated.

Kantenga stated that the future is starting to look less like 2022 and more like 2019.

Additional LinkedIn Findings

  • Greater intensity: The job search intensity in June was 35% higher than the previous year. This means that more job seekers are applying to more roles, creating greater competition.
  • Workers stay in their jobs longer: The short tenure rate of LinkedIn, which measures how many positions end after less than one year, has decreased by 5.5% since June last year.
  • Less confidence: The confidence of American workers in obtaining and maintaining a job has decreased.

Kantenga stated that “a lot of air had been let out” of the job market, suggesting that workers were taking a more protective approach when it came to their employment.

This may be due to the recent round of layoffs, which were carried out in lockstep by many employers, in a “herdlike mentality”, said Julia Sterner Holden, a recruiter who works in a variety of industries.

She said that while there were sporadic signs recently of an increase in hiring, the year began with a virtual freeze on hiring, which has continued to a large extent.

Sterner-Holde stated, “Everyone looked to see what the other people were doing.” It comes in waves. “When one person starts hiring, others will follow.”

Employment landscape is changing

The Labor Department released data this week showing that the number of jobs in the economy remains at an all-time high, with 9.6 million. The number of job openings has increased, but a greater share is now in the education and health care sectors. This is compared to a year earlier when jobs in business and professional service dominated.

Michael Steinitz is the senior executive director of Robert Half, an HR consulting firm.

“The question is: Are we in a downturn? He said that companies were being more cautious. They may be putting certain projects on hold or not moving forward, but instead are maximizing the production of their existing staff.

Many economists are happy to hear about the slowing down of the job market. In the last year, Federal Reserve officials blamed an overly-strong labor force as a major driver of unprecedented inflation rates.

Fed Chair Jerome Powell stated at his latest press conference that “we see a labor market where there is a strong demand for workers, which is the engine of the economic growth. People are being hired, and many are returning to work. They’re getting paid, and spending money. That’s what is driving the economy.”

“But it is slowly slowing down, and cooling.” “That’s the best prescription to reach our goal,” he said, referring the central bank’s effort to bring the inflation rate down to 2%.

In the trenches of the job market, workers like Tomarchio are on the brink of major lifestyle changes. He’s already moved from Miami’s upscale Brickell neighborhood into a rental apartment that is more affordable in Wynwood. Wynwood has seen an explosion of apartment construction recently.

He said, “I am urgently searching for a new job because I have only a few months’ worth of savings before I can no longer afford to pay my rent or drive my car.”

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