US Treasury Secretary Janet Yellen said last week that the “US economy is strong amid robust consumer spending but some areas are slowing down.” Speaking in an interview with CNBC, Yellen said she “expects continued progress in bringing inflation down over the next two years with a strong labor market.” She admitted the economy has slowed somewhat, but said the US still has a “very healthy labor market” with “significant” wage gains.
"We've always thought an unemployment rate with four as the first digit is a very strong labor market. Clearly, Americans feel good about their job prospects. They're finding work quickly."
Read more via CNBC, Reuters
The latest Conference Board Employment Trends Index (ETI) suggests the pace of job growth is likely to slow in the months ahead.
The latest ETI, for May, fell to 116.5 from 116.79 in April.
The ETI is a composite index. A decrease in the index suggests a corresponding slowdown in employment.
The ETI has “been on a slowly declining trend since reaching its peak in March 2022," according to the Conference Board.
Senior Conference Board economist Selcuk Eren said the index “remains quite elevated,” indicating “job gains are likely to continue over the next few months, but at a slower rate.”
Eren said job losses are concentrated within a few sectors, and that the economy overall “continues to generate employment opportunities.”
Wage growth is “slowing down but remains above its pre-pandemic rate.”
Eren expects “job losses and a rise in unemployment levels later in 2023 through the early months of 2024.”
“Overall, we remain in a very tight labor market, especially compared to pre-pandemic conditions. Job growth continues economy-wide, with in-person service sectors leading the way. However, weakness is starting to become visible across other labor indicators, including a decline in voluntary quits and a surge in layoff announcements over the first five months of 2023.”
Read more via The Conference Board
According to the latest ISM Report on Business published by the Institute for Supply Management, “economic activity in the services sector expanded in May for the fifth consecutive month.”
The Services PMI registered 50.3% in May, down 1.6 percentage points from April, but still indicative of growth.
The latest reading, along with previous readings, indicates “sustained growth for the sector.”
The services sector has expanded in “35 of the last 36 months, with the lone contraction in December of last year.”
“There has been a pullback in the rate of growth for the services sector. The majority of respondents indicate that business conditions are currently stable; however, there are concerns relative to the slowing economy.”
Read more via ISM World
Despite the fact that many workers say they’re feeling increasingly burned out, many say they “don’t feel they can take time off or relax this summer.” According to a new report from Robert Half, burnout rates are rising for a significant number of American workers.
Over a third of US workers told Robert Half they are “more burned out now than a year ago.”
The top reasons reported for feeling burned out include “heavy workloads, lack of communication and support from management, and insufficient tools and resources to perform effectively.”
The highest burnout levels were reported by working parents, millennials, and employees who have been with their company for two to four years.
40% of workers surveyed said they “feel uneasy about expressing their feelings of burnout to their boss.”
20% of workers said their manager has “not taken any action to help alleviate work-related stress.”
28% of respondents said they won’t be taking time off this summer, due to having “too much work” or fearing they could lose their job if they opted to take vacation.
“Despite employers’ efforts to better support employee well-being, burnout is an issue that needs ongoing attention. Compounding the matter, businesses are moving forward with an influx of new projects, putting more pressure on current staff who may already be stretched thin.”
Read more via Robert Half, HR Dive
According to a recent Conference Board report, a third of US workers are reporting “worsening mental health.”
Highlights from the survey of 1,100 workers:
34% of US workers say their mental health has declined in the last six months, and attribute that to “long hours and heavy workloads” that lead to anxiety and stress.
48% of workers who reported lower mental health said they work more than 50 hours a week.
Workers said they have experienced “mental health challenges related to poor workplace communication, poor work-life balance, and time spent in meetings.”
Almost 70% of workers who reported declining mental health also said they are experiencing decreased levels of engagement.
Workers increasingly feel uncomfortable talking to their manager about their mental health. 38% of workers said they “don’t feel comfortable speaking to their manager about their mental health concerns — more than double the 18% who said that a year ago.”
When it comes to what would help alleviate their mental health symptoms, workers said flexibility and work-life balance would help their mental health the most.
“This survey reveals that many workers are really struggling with their mental health. This could be due to a combination of factors both inside and outside of the workplace, but the fact remains that it can have an outsized impact on work performance. Workers need the ability to truly disconnect and reset, but many companies are now recognizing that this can be a major challenge when their colleagues are still working.”
Read more via Conference Board, HR Dive
Most LGBTQ+ workers say they feel included at work and that they are treated fairly, but a significant number say they aren’t open about their identity at work and feel that doing so could jeopardize their chances at advancement.
According to research from SHRM, 40% of LGBTQ+ workers say they have not disclosed their identity at work.
Of those who say they haven’t disclosed their identity at work, 20% say that if they revealed their identity, they believed they wouldn’t be promoted.
LGBTQ+ workers are significantly less likely to say their company has “equitable representation at all levels" compared to non-LGBTQ+ workers.
Just 50% of companies said they include LGBTQ+ identities in DEI efforts.
“Recognizing the importance of inclusion and support for LGBTQ+ workers, this new research shows organizations are making headway. However, we have plenty of room for improvement. Just hiring LGBTQIA+ individuals to maintain diversity isn’t sustainable without a culture of inclusion that truly welcomes all individuals for who they are.”
Read more via SHRM
China: Youth unemployment remains at a record high in China, with many young Chinese “refusing to pursue a career” altogether. Over 20% of people ages 16 to 24 were unemployed in April, despite the overall unemployment rate of 5.2%. With millions of college graduates set to join China's labor market in late June, experts say the “youth unemployment problem is only set to worsen probably over the next year or so.” (DW)
Portugal: Portugal is launching its own trial of the four-day work week. Approximately 40 companies are expected to participate in the six-month government-funded trial. Employers taking part include a nursery, care home, retailers and not-for-profit organizations. According to the OECD, 72% of the Portuguese workforce work more than 40 hours per week. (CNBC)
United Kingdom: According to new government analysis, the UK’s pension gender gap is a “gaping chasm.” The difference between the size of men and women’s private pensions has reached 35%, and reaches as high as 60% for some groups. According to the analysis, “for every £100 saved in a pension scheme by a man, a woman typically saves only £65.” (Personnel Today, Department for Work & Pensions)
