Hiring Cools to Slowest Pace Since June 2020: Insights from Vanguard 401(k) Data
Hiring Trends in 2023: What the Latest Data Shows
According to Vanguard's insights, hiring cooled to 1.3% in August 2023, reflecting the slowest pace since June 2020. This metric is derived from 401(k) retirement plan enrollments and highlights a notable dip in employment activities.
Comparison with JOLTS Data
In comparison, the government's 3% metric from the Job Openings and Labor Turnover Survey (JOLTS) for July points to a contrasting trend, raising questions about the labor market's health.
Implications of Recent Rate Cuts
- Federal Reserve Chair Jerome Powell expressed concerns over further weakening of the labor market after the recent rate cut.
- The impact on new labor force entrants is significant, as they typically face higher unemployment rates while seeking jobs.
This data not only illustrates current employment trends but also signals potential challenges for future workforce entrants.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.