I think it’s been notable for most people that the job market has been declining ever since tech. companies started to lay off employees last year. Specifically, according to the Wall Street Journal, the unemployment rate has now reached a 50-year low. But, did you know that the U.S. added a total of 225 jobs last year? If this is true, why is the job market still in dire need of help? 

Well first of all, it is true that the U.S. added 225 jobs last year—meaning that new jobs were added every month. However, the Bureau of Labor Statistics—which compiles monthly reports that track how many jobs were added to American companies—was off in their reports. In 2023, except for October, the Bureau overestimated the number of jobs added. This hasn’t happened since 1979 which shows there aren’t enough jobs for everyone. 

Moreover, Liz Ann Sonders, chief investment strategist of the Charles Schwab Corporation, stated that the U.S. saw a similar situation in 2007 and 2008 which later led to a global financial crisis. As they say, history does repeat itself so I think what the U.S. is experiencing

Furthermore, another contributing factor is the drop in wages. They dropped a second time in 3 months since December 2023 due to the decline in average working hours. When companies reduce working hours, most of the time, it means that they are willing to lower labor costs as they are not making as much, but they are not ready to lay off their workers yet. 

Don’t let this decline stear you away from applying to jobs or even quitting your job. If you wish to quit your job now, just keep in mind that it’ll be more difficult to find another job.

For those applying to jobs, remember to be confident and apply to jobs that you want to actually get as you’re most likely going to be doing this for at least a few years.

Other factors that could improve the job market that are noteworthy to know include skills and training for new workers, acquiring new knowledge, boosting your network, mentoring, and observing industry trends.