• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Hiring stays strong for low earners — while job growth for middle- and high-earners slows, Vanguard finds
Editor's Pick

Hiring stays strong for low earners — while job growth for middle- and high-earners slows, Vanguard finds

by June 1, 2024
by June 1, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The pace of hiring remains strong for lower-earning Americans, holding steady above its pre-pandemic baseline even as the demand for higher-income workers has waned slightly, according to new data from Vanguard.

The hires rate for the bottom third of workers by income (who earn less than $55,000 a year) was 1.5% in March, where it has largely hovered since September 2023, according to a new Vanguard analysis.

The hires rate gauges the number of new hires as a share of existing employees.

By comparison, it was lower — about 1.2% to 1.3% — in the months leading up to the Covid-19 pandemic, Vanguard found.

“This is partly a reflection of lower-paying service industries still trying to recover from the COVID shock — a challenge since many of those workers have transitioned to higher-paying opportunities,” Adam Schickling, a senior Vanguard economist, said in the analysis.

Vanguard is among the nation’s largest 401(k) plan administrators. Its analysis is based on new enrollments in its 401(k) plans.

Meanwhile, higher earners have seen hiring decline modestly.

Workers with incomes of $55,000 to $102,000 saw their hiring rate decline to 0.5% in March from 0.6% in September; those earning over $102,000 saw it fall more, to 0.4% from 0.6% during that time, Vanguard said.

Higher-paying industries are “taking a considerably more cautious approach to hiring relative to the hectic 2021 to 2022 hiring surge,” Schickling said.

Conversely, hiring has boomed in sectors like health care and hospitality, which tend to be lower-paying industries, said Julia Pollak, chief economist at ZipRecruiter.

For example, there’s been significant demand for home-care givers, certified nursing assistants, medical technicians, patient transporters and other hospital jobs, she said. The health-care field has added more than 750,000 total jobs over the last year, a “huge, huge number” and about triple its pre-pandemic growth, Pollak added.

The pandemic also created a “FOMO economy” that led to a surge in travel spending and therefore increased demand for jobs in hotels and other accommodation gigs, Pollak added.

“And these jobs can’t be automated,” perhaps insulating such workers from the leaner staffing that can result from company experimentation with artificial intelligence, she said.

The job market has broadly cooled since 2022 from its scorching pace after the U.S. economy reopened.

The U.S. Federal Reserve raised interest rates to their highest level in two decades to pump the economic brakes and rein in inflation. It’s unclear when they might reduce borrowing costs.

However, the labor market remains strong and resilient by many metrics — and may be strengthening, Pollak said.

“I think a lot of the data points to a pretty hot 2024,” Pollak said. “The slowdown we saw in 2023 has not continued. Things have either stabilized or ticked up.”

Certain tailwinds seem to be propelling the labor market forward. For one, the “much anticipated recession” didn’t materialize, and companies that took a wait-and-see approach regarding hiring and business investment now feel more confident about growing again, Pollak said.  

Additionally, 2024 is the start of “peak retirement,” she said. The largest cohort of baby boomers is poised to reach age 65 between now and 2030.

This means companies must recruit a big wave of next-generation talent to replace those departing workers, Pollak said.

However, risks remain in the near term.

Job openings have declined substantially from their pandemic-era peak, though remain elevated from historic levels. Such a sharp decline in job openings without a corresponding jump in unemployment “is unprecedented, singular, and exceptional” in the post-war era, Nick Bunker, economic research director for North America at job site Indeed, wrote earlier this month.

“But it’s not clear how much longer this miraculous trend can continue,” he wrote.

This post appeared first on NBC NEWS
You Might Also Like
  • Trump Organization sues Capital One bank over account closures after Jan. 6 Capitol riot
  • Global IoT market size to grow 19% in 2023
  • Florida judge tosses out Disney’s lawsuit against Gov. Ron DeSantis
  • Auto workers union announces tentative agreement to end strike with Stellantis
Share
0
FacebookTwitterPinterestWhatsapp

previous post
N.Y. Fed President John Williams says inflation is too high but will start coming down soon
next post
Top adviser recommends against Elon Musk’s $56B Tesla pay package

You may also like

Bruce Nordstrom, who helped grow family-led department store chain, dies...

May 20, 2024

Trump Media auditor charged by SEC with ‘massive fraud,’ barred...

May 5, 2024

JetBlue talking to ‘multiple airlines’ about a new partnership

February 20, 2025

Hims & Hers Health says it will offer compounded GLP-1...

May 22, 2024

Starbucks unveils plan to add 17,000 locations by 2030

November 4, 2023

U.S. investigating power-assisted steering failure complaints in older Ram pickup...

August 11, 2023

Boeing freezes hiring in sweeping cost cuts as it grapples...

September 17, 2024

‘RFK’ing the french fries’: Steak ‘n Shake becomes a MAHA...

March 17, 2025

How is the IoT being used in the gambling industry...

January 17, 2023

Bitcoin prices hit all-time high, soaring to nearly $69,000

March 7, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Universal’s Epic Universe theme park set...

    October 18, 2024

    Adidas to cut up to 500...

    January 27, 2025

    Shares of generator maker soar, insurance...

    October 8, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here