ThinkWhy, a Dallas-based SaaS company, focused on creating a new generation of AI-driven labor market solutions, released its national jobs report and labor forecast for June. The report follows a recent announcement from the Bureau of Labor Statistics that the economy added 850,000 jobs in June, with the unemployment rate at 5.9%. ThinkWhy’s June Report reveals that Los Angeles, New York, and Minneapolis had the most jobs added in the first half of 2021 while leisure-hospitality and government sectors show the strongest gains in June.
With 9.3 million jobs open, employers have been scrambling to attract talent since the second quarter began while trying to seize new revenue and growth opportunities as America’s economy reopens post-COVID. Job creation in April and May at 269,000 and 583,000, respectively, failed to meet economists’ expectations, though the labor market has kicked into higher gear in June. The question is, will the momentum continue?
The Outlook for Job Recovery
LaborIQ, ThinkWhy’s talent intelligence software, projects a significant acceleration of job growth in the second half of 2021. May and June employment gains suggest talent acquisition professionals will have their work cut out for them as the business progresses through the remainder of 2021, a year in which upwards of 73 million hires could take place.
With news headlines focused on the potential rise of the COVID delta variant, the near-term outlook could become cloudier if another spike in virus cases occurs. Overall, the job market is expected to remain strong, especially if more workers rejoin the labor force over the summer months.
Industry Recovery Outlook
U.S. industries have been impacted differently by the pandemic and thus, recovery will be uneven across sectors based on varying economic influence. As a result, each city will be impacted differently. Talent acquisition professionals must understand the economic drivers that impact the ability to ramp up hiring and business development.
The service-based economy is bouncing back. Consumer demand and business investments have swelled, signs of improved job prospects and employment growth opportunities. This is good news for Leisure and Hospitality, which was anemic for much of the past year.
LaborIQ expects to see pre-pandemic employment levels return unevenly across the major sectors, extending past 2025.
Edited by Maryssa Gordon, Senior Editor, Price of Business Digital Network