U.S. businesses added a higher-than-expected 143,000 new jobs in September, paycheck company ADP said. Yet it was the sixth straight month in which employment gains totaled less than 200,000 in a sign the labor market has cooled off considerably.
A chillier labor market has overtaken inflation as the Federal Reserve’s chief worry. The Fed cut interest rates two weeks ago with inflation slowing and the bank vowed to make further cuts to ensure the labor market doesn’t deteriorate much further.
Economists polled by the Wall Street Journal had forecast a gain of 128,000 new jobs in the ADP’s September survey.
The red-hot labor market of a few years ago — when wages were surging and workers had leverage over their bosses — is gone.
Since jobs are harder to obtain, workers are quitting at the lowest rate in 11 years if the pandemic years are set aside.
Hiring is unlikely to accelerate much until the Fed cuts interest rates further and lower borrowing costs to juice the economy.
Market reaction: The Dow Jones Industrial Average
DJIA
SPX
A new report by Canva reveals a significant gender gap in employee appreciation. While most employees desire recognition for their work, women are more likely to feel undervalued than men. This disparity is attributed to unconscious biases and company cultures that often overlook women's contributions.
Flexible work arrangements also impact employee appreciation. On-site workers tend to feel more valued than remote or hybrid employees, partly due to the challenges of managing dispersed teams.
Showing appreciation is crucial for employee motivation, confidence, and productivity. Companies can foster a culture of appreciation by providing consistent recognition, creating flexible work options, and prioritizing work-life balance.