US Jobs are Back, But How?

US Jobs Are Back, But How?

WAYNE BROTHERS OCT 11, 2024

Quick Summary

US Jobs have been spiraling. According to US News, "America's employers added a surprisingly strong 254,000 jobs in September [2024]." Unemployment in the nation has waned to 4 percent. Restaurants have added over 60,000 jobs, and other sectors such as healthcare, government, and construction have each added 20,000. In addition, hourly wages have seen a slight increase.

How this is happening

Despite AI's increasing prevalence and inflation's threatening presence, many US industries have assembled more work for Americans. This shows that businesses have confidence in the economy and are not concerned about downturns. Additionally, the US's growing economy has led to an expansion of various sectors such as hospitality. To complement this growth, businesses have added more jobs.   

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Implications

As the US job market increases, unemployment will decrease, leading to less homelessness in the future. Increasing hourly wages has also created a larger supply of labor. 

How this will impact society

Businesses will benefit from having more workers, as a larger workforce permits them to expand operations and match consumer demand. The labor force (people who are actively seeking employment or are employed) also benefits from businesses hiring more workers, as more people can find jobs. The US government may reap the benefits of increased tax revenues from higher employment rates. 

On the other hand, the US is in danger of reaching an unemployment rate at which the economy is at full capacity. Some economists suggest that an unemployment rate of less than 5% indicates a point near full capacity. Others argue that 3.5% is the rate to look out for. At that point, the US would have an unemployment rate that is too low. Essentially, this means there will be reduced productivity due to an increase in marginal cost. In other words, each addition of a job hire will not create enough efficiency to cover its cost. If it were to happen, it would harm the US economy.

Conclusion

In conclusion, it's good to see that there are more jobs for workers in the US at a time when AI is revolutionizing the employment landscape. Hopefully, unemployment in the US continues to fall as job opportunities rise. However, it is important to keep in mind that very low rates of unemployment could be detrimental to the economy.