Now that major economies have released their latest jobs figures, it’s time for me to have a recap of how employment conditions are looking. You see, a country’s level of employment is crucial when it comes to sustaining overall economic growth. A pickup in hiring typically translates to more spending, which eventually boosts manufacturing and business investment.
Based on the latest set of jobs reports, are we seeing improvements or not? Take a look at these figures compiled from Trading Economics:
As you can see from the table above, only the United States and the United Kingdom have shown improvements in jobless rates for the latest reporting period. On top of that, the U.S. has shown a faster pace of increase when it comes to the number of employed persons. Japan has also logged in a rise in employment change, yet its jobless rate held steady at 3.6%.
As for the rest of the major economies, slower gains in hiring were seen for the latest reporting period. Canada even reported a decline in employment levels for April instead of showing the estimated 42,900 gain. Could this be indicative of a slowdown in global employment?
Of course, as I regularly point out, one data point doesn’t necessarily make a trend. What’s interesting to note is that weaker hiring gains usually result to a downturn in spending, as unstable labor market conditions could convince more folks to save rather than spend their hard-earned money. In turn, declines in spending might lead to lower manufacturing and business investment, which could then take their toll on labor conditions.
Enough of the gloom and doom! For all we know, we might see a rebound in global hiring pretty soon, as seasonal factors kick in. I’ll keep you posted once the next set of figures are released, so stay tuned.
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