As summer is in full swing, the U.S. economy continues to create jobs after last year’s pandemic-induced crisis. The labor market has recovered 16.7 million of the 22.4 million jobs lost. But the recovery has varied by location and industry, according to an analysis by ThinkWhy, a Dallas-based software company focused on market solutions.
Over the past month, in particular, the unemployment rate in the United States fell 5.4% while paid employment increased by 943,000, the US Bureau of Labor Statistics reported today.
“Notable job gains have taken place in leisure and hospitality, local public education, and professional and business services,” the report said. “The number of long-term unemployed (those without a job for 27 weeks or more) fell from 560,000 in July to 3.4 million, but is 2.3 million higher than in February 2020. These long-term unemployed accounted for 39.3% of the total unemployed in July. . “
But while July saw rates drop, unemployment remains high compared to pre-pandemic rates (3.6% in January 2020). And even though a lot of people are out of work, there are a record number of job openings, according to a ThinkWhy analysis looking at data from Friday. With 8.7 million unemployed (782,000 fewer than in June), there are currently over 9.2 million job vacancies.
There could be a number of reasons for this. On the one hand, a year of working from home has prompted many people to rethink their work-life balance, which has prompted many to quit their jobs in search of opportunities elsewhere.
“The US job market is undergoing a major transition with several factors at play, including employee job change, the COVID-19 Delta variant, increased salary requirements and the delay in moving candidates throughout the job. recruiting and hiring process, ”said Jay Denton, chief analyst at ThinkWhy. “Despite these challenges, however, the labor market continues to advance towards recouping all the jobs lost since the start of the pandemic and remains on track for a full recovery by early 2023.”
Considering this transition, ThinkWhy has identified 10 metropolitan areas that are experiencing particularly strong economic recovery. Each region was identified using an AI program called LaborIQ, which takes into account variables such as net migration, jobs created, number of college graduates, jobs recovered, population growth and wages.
Top 10 Best Performing US Labor Markets in July
- Dallas-Fort Worth-Arlington, Texas
- Phoenix-Mesa-Scottsdale, Arizona.
- Austin-Round Rock, Texas
- Raleigh, North Carolina
- Denver, Aurora-Lakewood, Colorado.
- Boise City, Idaho
- Nashville-Davidson-Murfreesboro-Franklin, Tennessee
- Atlanta-Sandy Springs-Roswell, Georgia.
- Provo-Orem, Utah
- Salt Lake City, Utah
“Eight of the 10 markets rank in the top 25 for net migration, representing people moving to those regions, as opposed to natural population growth. A lot of times people move for job opportunities, but family and retirement are also a factor, ”said a statement on the results. “Dallas, Phoenix and Austin currently rank in the top three for net migration, in addition to leading the overall performance rankings. “
Notably, half of those 10 metropolitan areas are in Utah, Texas, and Idaho, “which also top the list for population growth over the past decade. As vacancies increase, the influx of human capital into these areas has rebounded dramatically, placing each metro in a stronger position than most to fill vacancies, ”Denton said.
Denver was identified as an exceptional area in July, continuing an upward trend over the past year. The metropolitan area ranks among the best in terms of population growth, salary level, education level, annual jobs earned, college graduates and net migration.
More generally, the latest report from the United States Bureau of Labor and Statistic states that “the service economy is rebounding. Consumer demand and business investment have swelled, signs of improving job prospects and employment, alongside an increase in summer travel. This is good news for the leisure and hospitality industry. Conversely, manufacturing, as well as commerce, transport and utilities, continue to suffer from material and labor shortages, now associated with rising raw material and fuel prices ”, says the ThinkWhy press release.