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    U.S. Economy Added 531,000 Jobs in October

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    The American economy added 531,000 jobs in October, the Labor Department said Friday, a sharp rebound from the prior month and a sign that employers are feeling more optimistic as the latest coronavirus surge eases.Economists polled by Bloomberg had been looking for a gain of 450,000 jobs. The unemployment rate declined to 4.6 percent, from 4.8 percent.The October gain was an improvement from the 312,000 positions added in September — a number that was revised upward on Friday.Hiring has seesawed this year along with the pandemic, especially in vulnerable sectors like hospitality and retail, where workers must deal face to face with customers. White-collar employees have fared better, since many can work remotely.Some employers are complaining of a shortage of workers, as many people remain on the sidelines of the job market. The labor force participation rate — the share of the working-age population employed or looking for a job — was flat in October.In theory, the demand for workers should be drawing more people into the labor force, but the participation rate is nearly two percentage points below where it was before the pandemic. Early retirements have been a factor.A federal supplement to unemployment benefits expired in early September, and experts are watching whether the end of that assistance — and a depletion of savings accumulated from other emergency programs — increases the availability of workers.So far, those effects have been muted, as health concerns and child care challenges have continued to affect many families. At the same time, the labor shortage has given workers a measure of leverage they’ve not experienced in recent years.“For the last 25, maybe 30 years, labor has been on its back heels and losing its share of the economic pie,” said Mark Zandi, the chief economist at Moody’s Analytics. “But that dynamic is now shifting.”Supply chain problems are another headache for employers. Automobile manufacturers have been particularly hurt by a shortage of semiconductors, while many companies are dealing with rising prices for raw materials and transportation.The Commerce Department reported last week that the economy grew by 0.5 percent in the third quarter, compared with 1.6 percent in the second quarter. Economists attributed the slowdown to the resurgent pandemic and the supply chain holdups.Still, there are reasons to be optimistic. The Federal Reserve said Wednesday that it would begin winding down the large-scale bond purchases that have been underway since the pandemic struck, signaling that it considers the economy healthy enough to be weaned from the extra stimulus.“The labor market is tight,” said Scott Anderson, chief economist at Bank of the West in San Francisco. “Consumers are in good shape, and the willingness to spend is certainly there.” More

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    U.S. Workers Quitting Their Jobs Hit a Record in August

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    As the economy struggles to get back on track amid the pandemic, businesses are struggling to find employees — and workers are discovering that they have leverage.Nearly 4.3 million workers voluntarily quit their jobs in August, the Labor Department said Tuesday. That was up from four million in July and is by far the most in the two decades the government has been keeping track.

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    Number of People Who Left Their Jobs Voluntarily by Month
    Note: Seasonally adjusted. Voluntary quits exclude retirements.Source: Bureau of Labor StatisticsBy The New York TimesThe explosion of quitting is the latest evidence that the balance of power in the labor market has swung toward workers, at least temporarily. Average hourly earnings have surged in recent months, particularly for the lowest-paid workers, and yet many businesses report they are still having difficulty finding workers.The abundance of opportunities may be helping to fuel the wave of quitting: The government’s tally includes people who left jobs to take other, perhaps better-paying, positions — or who didn’t have another job lined up but were confident they could find one — as well as those choosing to leave the work force. (The figure does not include retirements, which are counted separately.)The number of open jobs actually fell somewhat in August, to 10.4 million from a record 11.1 million in July, as the latest wave of the pandemic took a bite out of consumer demand, especially in the service sector. But the slowdown did little to ease the hiring logjam: There were more open jobs than unemployed workers in August. Openings were particularly elevated in the leisure and hospitality sector, where the number of people quitting was also highest. Economists said the spread of the more-contagious Delta variant of the coronavirus could be contributing to workers’ reluctance to return to work.At the same time, hiring fell in August. That is consistent with data released earlier showing that job growth slowed in late summer. That data, also from the Labor Department but based on different surveys, showed that the Delta-driven slowdown continued in September. So did the hiring difficulties: The labor force shrank in September, as higher wages failed to draw people back to work.“We know that the Delta variant has likely made it more difficult to unlock labor supply because there are some workers who are concerned about health risks — and then on top of that, many school reopenings were disrupted,” said Daniel Zhao, an economist at the career site Glassdoor. “It’s possible that as the Delta wave recedes, then we will realize some of those benefits of reopened schools and a revitalized economy, but that is going to take some time.” More

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    College Graduates Find Booming Job Market a Year After Pandemic Lows

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    Seniors and graduates are again in demand as companies revive recruiting, underscoring the economic premium that comes with a diploma.Trevaughn Wright-Reynolds, a senior at Colby College in Maine, expected a lengthy job search when he returned to campus in August. “I wasn’t sure how much interest I was going to get,” he said. “I didn’t know what to think of the job market.”It didn’t take him long to find out. By September, he was in the final round of interviews with several suitors, and on Oct. 1, Mr. Wright-Reynolds accepted a position with a proprietary trading firm in Chicago. “I didn’t think I would get an offer this quickly,” he said.For many college students, the pandemic’s arrival last year did more than disrupt their studies, threaten their health and shut down campus life. It also closed off the usual paths that lead from the classroom to jobs after graduation. On-campus recruiting visits were abandoned, and the coronavirus-induced recession made companies pull back from hiring.But this year, seniors and recent graduates are in great demand as white-collar employers staff up, with some job-seekers receiving multiple offers. University placement office directors and corporate human resources executives report that hiring is running well above last year’s levels, and in some cases surpasses prepandemic activity in 2019.“The current market is great for employment,” said Lisa Noble, director of employer partnerships and emerging pathways at Colby. “There was a lot of trepidation for companies in 2020. People wanted to see how things would work out and were stalling.” Since June 1, Ms. Noble has had discussions with 428 employers, compared with 273 in the same period last year.Much of the recruiting is taking place virtually, as are job fairs and even many internships. But the reliance on virtual platforms like Zoom and Microsoft Teams for interviews, job offers and eventually welcoming new hires aboard hasn’t dimmed enthusiasm among employers.“The appetite for college labor is strong right now, whether it’s student positions, or part time, all the way through entry-level jobs,” said Jennifer Neef, director of the Career Center at the University of Illinois Urbana-Champaign.That appetite at this stage of the pandemic — when overall U.S. employment remains more than five million jobs below the level in early 2020 — underscores the longstanding economic premium for those with a college education over holders of just a high school diploma.The unemployment rate for all workers with a college degree stood at 2.8 percent in August, compared with 6 percent for high school graduates with no college. Among workers 22 to 27, the jobless rate in June was 6.2 percent for those with at least a bachelor’s degree and 9.6 percent for those without one, according to a study by the Federal Reserve Bank of New York.“We’ve seen a bifurcation in the labor market recovery,” said Gregory Daco, chief U.S. economist at Oxford Economics. “College graduates were less affected by job losses and have seen a faster rebound while people with high school diplomas or less witnessed a much more serious decline in employment opportunities during the Covid crisis.”What’s more, the spread of the Delta variant of the coronavirus has been a one-two punch for those lacking a college degree, hitting the sectors they depend on the most, like restaurants and bars, hotels and retail businesses. By contrast, white-collar employers are thriving.Office work can also be done remotely, a key advantage over face-to-face jobs dealing with consumers that frequently employ less-educated workers. In many cases, the new hires will rarely set foot at corporate headquarters, with orientation and full-time work mostly taking place online.And the courtship rituals of recruiters haven’t changed, even if everything is done over the internet.“It’s back to business as usual,” said Wendy Dziorney, global university hiring leader at HP Inc. The company plans to hire 315 graduates of the class of 2021 in the United States, compared with 126 from the class of 2020 and 210 in the class of 2019.Fall marks the peak of the recruiting season on campus, with interviews and full-time offers for seniors, while internships beckon for sophomores and juniors.Students in search of jobs and internships gathered to listen to recruiters from a consulting firm at Colby College last week.Tristan Spinski for The New York Times“October is our busiest month,” said Jennifer Newbill, director of university recruitment at Dell Technologies. Her company has extended full-time offers to more than 1,300 graduates this year, up 60 percent from 2020.Recruiters of students in the hottest majors — including engineering, computer sciences, accounting and economics — find themselves butting up against one another for the same candidates.“I’ve been with the firm 26 years and I’ve never seen it this competitive,” said Rod Adams, talent acquisition and onboarding leader at PwC, the accounting and consulting firm. “It’s not just our direct competitors but also tech firms, big industry, banks and investment companies.”For this year, PwC plans to extend offers for internships and full-time jobs to 12,000 people, up 15 to 20 percent from 2020 and 10 percent above 2019 levels. Like many employers, PwC is approaching students earlier and trying to get top candidates to make a commitment as soon as possible.The interviewing process used to extend through November, but Mr. Adams hopes to get offers out by the middle of this month and to hear back from candidates by Thanksgiving. “We are moving faster, and the moment students set foot on campus, they start hearing from us,” Mr. Adams said.PwC is using a hybrid approach to recruiting, with Mr. Adams and his team visiting a few campuses in person while contacting many more virtually. “It allows us to extend our reach,” he said.In particular, the company has made an effort to pursue students from historically Black colleges and universities, recruiting from 35 of these institutions; five years ago, it recruited from seven.The rise in campus hiring means more choices for some current students as well as belated help for the pandemic-hit class of 2020, said Annette McLaughlin, director of the Office of Career Services at Fordham University.“Activity is up significantly from last year and is about 10 percent higher than it was before the pandemic,” she said. “It’s likely that students will get multiple offers and they will have to choose.”“The current market is great for employment,” said Lisa Noble, director of employer partnerships and emerging pathways at Colby.Tristan Spinski for The New York TimesThe rebound is also benefiting recent Fordham graduates like Jonah Isaac, who finished school in May 2020, two months after the pandemic struck. Several companies withdrew offers, and Mr. Isaac, a business administration major, spent a year interviewing for spots that never materialized until a Fordham alumnus helped him get a sales development job with Moody’s Analytics in June 2021.“It was a huge hit for many students, and not getting anything was demoralizing,” said Mr. Isaac, a Chicago native who was a wide receiver on Fordham’s football team. “I’d get to the third or fourth interview, and they’d say, ‘Sorry, we’re going in another direction.’”Members of the class of 2021 have had an easier time. Brittanie Rice, a Spelman College graduate, landed a job at Dell after working as an intern the summer before. “I felt lucky,” she said. “A lot of my friends had cancellations left and right, but my internship went on.”Ms. Rice was a computer science major, an especially sought-after concentration for many big employers. But Ms. Newbill, the university recruitment director for Dell, said her company was also hiring students majoring in nontechnical fields — like philosophy and journalism — for sales positions. “Sales is about the personality, not the degree,” she said.Still, graduates in STEM-related fields are having the most success.Manuel Pérez, 23, is two months into his job as a data analyst at Accenture, which led him to move to Nashville after graduating from the University of Puerto Rico, Mayagüez.Mr. Pérez, an information systems major, said he attended a virtual job fair last October and applied to work at Accenture after meeting with recruiters over Microsoft Teams. After three rounds of interviews, he received a job offer in March and started his position in the summer.“I had other job offers, but they all wanted me to start immediately, and I wanted to graduate first,” said Mr. Pérez, from Camuy, P.R. “I feel the job demand has grown, with more people demanding better pay, in every sector from retail to white-collar jobs.”Mr. Wright-Reynolds, the Colby senior, is studying statistics with a minor in computer sciences. A native of Medford, Mass., he will start at the trading firm in Chicago in August.“This was a great opportunity, and I couldn’t go wrong in accepting it,” he said. “I feel like a weight is off my shoulders. I have a lot more time to enjoy senior year.” More

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    Wage gains remained strong in August as hiring slowed.

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    Wages continued to grow briskly in August even as hiring decelerated, a surprising development that economists said was probably driven partly by continuing demand for workers in spite of coronavirus outbreaks caused by the Delta variant.Average hourly earnings climbed by 0.6 percent from July to August, more than the 0.3 percent that economists in a Bloomberg survey had forecast. Over the past year, they were up 4.3 percent, exceeding the expected 3.9 percent.Leisure and hospitality wages are well outpacing overall wages.Percent change in earnings for non-managers since January 2019 More

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    August 2021 Jobs Report: Employers Added Only 235,000 Jobs

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    The American economy slowed abruptly last month, adding 235,000 jobs, a sharp drop from the huge gains recorded earlier in the summer and an indication that the Delta variant of the coronavirus is putting a damper on hiring.August added a disappointing number of jobs.Cumulative change in jobs since before the pandemic More

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    July 2021 Jobs Report: Employers Add 943,000 to Payrolls

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    The American economy roared into midsummer with a strong gain in hiring, but there are questions about its ability to maintain that momentum as the Delta variant of the coronavirus causes growing concern.Employers added 943,000 jobs in July, the Labor Department reported Friday, but the data was collected in the first half of the month, before variant-related cases exploded in many parts of the country.While the economy and job growth overall have been strong in recent months, experts fear that the variant’s spread could undermine those gains if new restrictions become necessary. Already, some events have been canceled, and many companies have pulled back from plans for employees to return to the office in September.Still, with schools planning to reopen, at least for now, and Americans continuing to dine out and travel, the economy’s expansion remained on track last month. Some experts foresee a slight cooling on the horizon, but most think unemployment will keep falling as the labor market recovers the ground lost in the pandemic.“It’s been a sprint in terms of growth, but we may be moving into more of a marathon,” said Scott Anderson, chief economist at Bank of the West in San Francisco. “Travel season is winding down, and the Delta variant is a big concern.”The unemployment rate fell to 5.4 percent, compared with 5.9 percent in June. Before the report, the consensus of economists polled by Bloomberg forecast a gain of 858,000 jobs, with the unemployment rate dipping to 5.7 percent.The education arena, often a laggard in July as schools close and teachers go off the payroll, was a leader last month. Instead of letting teachers go as they have in the past, schools kept more workers on the payroll, creating a larger seasonal adjustment upward in the number of teaching jobs.Local government added 221,000 education jobs, after a jump in June, and 40,000 jobs were added in private education. Leisure and hospitality businesses, which were hit hard by lockdowns last year, recovered further, adding 380,000 jobs. That included 253,000 in food and drinking establishments, along with hiring gains in lodging and in arts, entertainment and recreation.Manufacturing and construction showed more modest increases, hampered by higher goods prices and a shortage of components like semiconductors. Employment in professional and business services jumped by 60,000, a sign that the white-collar sector is on the upswing.“Business is unbelievable,” said Tom Gimbel, chief executive of LaSalle Network, a recruiting and staffing firm in Chicago. “Companies are continuing to hire salespeople in numbers that I’ve never seen. It shows me that companies are very optimistic about the future.”“We’re seeing demand for senior people, but it’s not crazy,” he added. “The huge demand is entry to midlevel, with salaries ranging from $45,000 to $90,000. It’s the rebirth of the middle manager.”Despite the hiring gains, many managers report difficulty in finding applicants for open positions. Jeanine Lisa Klotzkin manages an outpatient addiction treatment center in White Plains, N.Y., and has had only limited success in her search for addiction counselors.“Normally, we’d have dozens of candidates,” she said. But six weeks after posting an online job ad, her clinic has received four applications. The positions pay $50,000 to $63,000 a year, said Ms. Klotzkin, who added: “These aren’t low-wage jobs. I don’t know where the people went.” More

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    Who Discriminates in Hiring? A New Study Can Tell.

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    Applications seemingly from Black candidates got fewer replies than those evidently from white candidates. The method could point to specific companies.Twenty years ago, Kalisha White performed an experiment. A Marquette University graduate who is Black, she suspected that her application for a job as executive team leader at a Target in Wisconsin was being ignored because of her race. So she sent in another one, with a name (Sarah Brucker) more likely to make the candidate appear white.Though the fake résumé was not quite as accomplished as Ms. White’s, the alter ego scored an interview. Target ultimately paid over half a million dollars to settle a class-action lawsuit brought by the Equal Employment Opportunity Commission on behalf of Ms. White and a handful of other Black job applicants.Now a variation on her strategy could help expose racial discrimination in employment across the corporate landscape.Economists at the University of California, Berkeley, and the University of Chicago this week unveiled a vast discrimination audit of some of the largest U.S. companies. Starting in late 2019, they sent 83,000 fake job applications for entry-level positions at 108 companies — most of them in the top 100 of the Fortune 500 list, and some of their subsidiaries.Their insights can provide valuable evidence about violations of Black workers’ civil rights.The researchers — Patrick Kline and Christopher Walters of Berkeley and Evan K. Rose of Chicago — are not ready to reveal the names of companies on their list. But they plan to, once they expose the data to more statistical tests. Labor lawyers, the E.E.O.C. and maybe the companies themselves could do a lot with this information. (Dr. Kline said they had briefed the U.S. Labor Department on the general findings.)In the study, applicants’ characteristics — like age, sexual orientation, or work and school experience — varied at random. Names, however, were chosen purposefully to ensure applications came in pairs: one with a more distinctive white name — Jake or Molly, say — and the other with a similar background but a more distinctive Black name, like DeShawn or Imani.What the researchers found would probably not surprise Ms. White: On average, applications from candidates with a “Black name” get fewer callbacks than similar applications bearing a “white name.”This aligns with a paper published by two economists from the University of Chicago a couple of years after Ms. White’s tussle with Target: Respondents to help-wanted ads in Boston and Chicago had much better luck if their name was Emily or Greg than if it was Lakisha or Jamal. (Marianne Bertrand, one of the authors, testified as an expert witness in the trial over Ms. White’s discrimination claim.)This experimental approach with paired applications, some economists argue, offers a closer representation of racial discrimination in the work force than studies that seek to relate employment and wage gaps to other characteristics — such as educational attainment and skill — and treat discrimination as a residual, or what’s left after other differences are accounted for.The Berkeley and Chicago researchers found that discrimination isn’t uniform across the corporate landscape. Some companies discriminate little, responding similarly to applications by Molly and Latifa. Others show a measurable bias.All told, for every 1,000 applications received, the researchers found, white candidates got about 250 responses, compared with about 230 for Black candidates. But among one-fifth of companies, the average gap grew to 50 callbacks. Even allowing that some patterns of discrimination could be random, rather than the result of racism, they concluded that 23 companies from their selection were “very likely to be engaged in systemic discrimination against Black applicants.”There are 13 companies in automotive retailing and services in the Fortune 500 list. Five are among the 10 most discriminatory companies on the researchers’ list. Of the companies very likely to discriminate based on race, according to the findings, eight are federal contractors, which are bound by particularly stringent anti-discrimination rules and could lose their government contracts as a consequence.“Discriminatory behavior is clustered in particular firms,” the researchers wrote. “The identity of many of these firms can be deduced with high confidence.”The researchers also identified some overall patterns. For starters, discriminating companies tend to be less profitable, a finding consistent with the proposition by Gary Becker, who first studied discrimination in the workplace in the 1950s, that it is costly for firms to discriminate against productive workers.The study found no strong link between discrimination and geography: Applications for jobs in the South fared no worse than anywhere else. Retailers and restaurants and bars discriminate more than average. And employers with more centralized personnel operations handling job applications tend to discriminate less, suggesting that uniform rules and procedures across a company can help reduce racial biases.An early precedent for the paper published this week is a 1978 study that sent pairs of fake applications with similar qualifications but different photos, showing a white or a Black applicant. Interestingly, that study found some evidence of “reverse” discrimination against white applicants.More fake-résumé studies have followed in recent years. One found that recent Black college graduates get fewer callbacks from potential employers than white candidates with identical resumes. Another found that prospective employers treat Black graduates from elite universities about the same as white graduates of less selective institutions.One study reported that when employers in New York and New Jersey were barred from asking about job candidates’ criminal records, callbacks to Black candidates dropped significantly, relative to white job seekers, suggesting employers assumed Black candidates were more likely to have a record.What makes the new research valuable is that it shows regulators, courts and labor lawyers how large-scale auditing of hiring practices offers a method to monitor and police bias. “Our findings demonstrate that it is possible to identify individual firms responsible for a substantial share of racial discrimination while maintaining a tight limit on the expected number of false positives encountered,” the researchers wrote.Individual companies might even use the findings to reform their hiring practices.Dr. Kline of Berkeley said Jenny R. Yang, a former chief commissioner of the E.E.O.C. and the current director of the Office of Federal Contract Compliance Programs, which has jurisdiction over federal contractors, had been apprised of the findings and had expressed interest in the researchers’ technique. (A representative of the agency declined to comment or to make Ms. Yang available.)Similar tests have been performed since the 1980s to detect discrimination in housing by real estate agents and rental property owners. Tests in which white and nonwhite people inquire about the availability of housing suggest discrimination remains rampant.Deploying this approach in the labor market has proved a bit tougher. Last year, the New York City Commission on Human Rights performed tests to detect employment discrimination — whether by race, gender, age or any other protected class — at 2,356 shops. Still, “employment is always harder than housing,” said Sapna Raj, deputy commissioner of the law enforcement bureau at the agency, which enforces anti-discrimination regulations.“This could give us a deeper understanding,” Ms. Raj said of the study by the Berkeley and Chicago researchers. “What we would do is evaluate the information and look proactively at ways to address it.”The commission, she noted, could not take action based on the kind of statistics in the new study on their own. “There are so many things you have to look at before you can determine that it is discrimination,” she argued. Still, she suggested, statistical analysis could alert her to which employers it makes sense to look at.And that could ultimately convince corporations that discrimination is costly. “This is actionable evidence of illegal behavior by huge firms,” Dr. Walters of Berkeley said on Twitter in connection with the study’s release. “Modern statistical methods have the potential to help detect and redress civil rights violations.” More