RPT - Real Situation At US Labor Market Not Reflected In Official Statistics - Experts

MOSCOW (UrduPoint News / Sputnik - 01st June, 2023) The official US unemployment figures do not take into account certain aspects of the labor market such as underemployment, people leaving the workforce, as well as the quality of the jobs available, experts told Sputnik.

The labor market has been one of the driving forces of the US economic recovery from the COVID-19 breakout, with hundreds of thousands of jobs being added without fail since June 2020 to make up for the initial loss of 20 million jobs to the pandemic. Meanwhile, the unemployment rate was down to 3.4% in April, the same 54-year low reached in January, data by the US Labor Department showed.

Nevertheless, those positive numbers do not paint the whole picture as there are elements that elude official numbers, Chelsea Ashbrook, a senior manager of corporate digital experience at US biotechnology corporation Genentech and founder of The Flexible Worker, told Sputnik.

"The thing is, while official statistics might paint a rosy picture with low unemployment numbers, they don't necessarily capture the undercurrents of underemployment or the challenges posed by the gig economy," Ashbrook explained, adding that in her opinion a vibrant job market is not just the number of jobs but also "fair wages, room for growth, job satisfaction, and a sense of security - factors that may not make the headlines but sure make a difference to the everyday American worker."

In a similar vein, Jonathan Westover, a professor and chair of organizational leadership in the Woodbury school of business at Utah Valley University, emphasized the need to look more closely at the quality of the jobs being created to see if they provide a living wage, benefits, opportunities for growth and development, as well as if they are sustainable.

"It's important to look at the underemployment rate, which includes those who are working part-time but would prefer full-time work, as well as those who have given up looking for work altogether. These numbers may paint a different picture of the job market than the official unemployment rate," Westover, who is also a managing partner and principal at Human Capital Innovations, said.

Moreover, the fact that the job market has stayed resilient despite reports about declining corporate profits can be explained by things like "government stimulus programs, changes in consumer purchasing habits, or characteristics unique to certain industries," Tracy Cauley, an HR at VEM Medical, explained.

"However, if dropping earnings continue and seriously affect enterprises' capacity to remain financially viable, it may eventually result in job losses or a slowdown in employment," Cauley said.

Westover also believes it is possible that the decreasing profits could result in companies laying off employees to save costs.

"As an executive coach, I would encourage companies to take a long-term view and consider alternative strategies for maintaining profitability, such as investing in employee training and development to improve productivity and innovation," the expert told Sputnik