Job Growth and Demand Article Discussion

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Summarizes the key points of the article.

Describes how the article relates to a specific topic (or topics) from the class

we talked about how the good economy can  affect  Haring new people  to the organization and how the bad economy can affect the organization    

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WASHINGTON—Job openings declined sharply in November, a sign of weakening employer demand that could restrain job growth in 2020. Job openings fell 10.8% in November from a year earlier to 6.8 million, the Labor Department said Friday. That marked the sixth straight month of annual declines and was the steepest fall since December 2009, when openings dropped 18.7% from a year earlier. Job OpeningsThe number of job openings peaked in late2018 and has moved down since.Source: Labor Department via St. Louis FedNote: Seasonally adjusted. .million2010’12’14’16’182345678 “Pullback in employer demand is leading to a leveling off of momentum in the labor market and also in the bargaining power for job seekers,” Nick Bunker, economist at Indeed, said. Separate economic data on industrial production and housing starts released Friday shed light on other parts of the U.S. economy affected by unseasonably warm weather. Job openings peaked at 7.6 million in November 2018 and have declined about 800,000 since then. They remain elevated compared with pre-2018 years. Many businesses cite widespread labor shortages as a factor holding back job growth, according to the Federal’s “beige book,” a collection of anecdotal reports from businesses around the country. The job market broadly remains in solid shape. Openings continued to run higher than the number of unemployed workers for the 21st straight month in November. Further, the U.S. labor market is still adding jobs at a steady pace and the unemployment rate is at a halfcentury low of 3.5%. One missing piece has been wages, which grew 2.9% in December from a year earlier, the smallest gain since July 2018. SHARE YOUR THOUGHTS Are you confident enough in the U.S. economy to look for a new job? Why or why not? Join the conversation below. Still, economists surveyed by The Wall Street Journal expect payroll gains to slow in 2020 as the pace of hiring eases. Economists expect monthly nonfarm-payroll gains to average 116,650 in the fourth quarter of 2020, down from the fourth quarter of 2019. The rate at which workers are quitting their jobs isn’t budging, a possible explanation for sluggish pay growth. Workers tend to command higher pay when they move from one job to another. The so-called quits rate logged in at 2.3% in November for the ninth time in 2019. In 2019, the U.S. labor market was a source of strength while manufacturing activity at home and abroad faltered. In December, there were signs of reversal in the goods-producing sector. Manufacturing output crept up, according to a Federal Reserve report. That could reflect early reaction to the agreement between U.S. and Chinese officials to the first phase of a trade deal, a truce in a dispute that weighed on global manufacturing for much of last year. Separately, utilities production declined by 5.6% because of lower demand for heating due to unseasonably warm December weather, the Federal Reserve said. Mild winter weather also helped boost housing starts in December, analysts noted. U.S. housing starts increased to a seasonally adjusted annual rate of 1.608 million in December, the highest level since December 2006, Friday’s Commerce Department report showed. Mild winter weather helped boost housing starts in December. PHOTO: DANIEL ACKER/BLOOMBERG NEWS Starts have increased the past three months, suggesting historically low mortgage rates coupled with a favorable U.S. economy are supporting the U.S. housing market.
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Running head: EFFECT OF THE ECONOMY ON BUSINESSES

Effect of the Economy on Businesses
Student’s Name
Institutional Affiliation
Date

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EFFECT OF THE ECONOMY ON BUSINESSES

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Effect of the Economy on Businesses
A good economy is a good thing for businesses. Especially for the unemployed in
society. The reason for this is a ripple effect that has been noticed and observed over the
years. For starters, a recent study shows that job openings have fallen by approximately 11
percent over the last year. The excellent economy spells good tidings for the people. Lack of
or reduction in the number of job openings means a lot of people are being hired;
approximately 7 million job openings have been filled. For small businesses, when the
economy is good, it means there will be a demand for small companies. Since the economy is
in the right place, there is enough cash flow through these small businesses to provide
outstanding profits. Also, since there is a high demand, there is an increase in the amount of
work that has to be done, and this, in most cases, prompts the business to hire more people to
help with the increased number of customers. That can explain why the number of
unemployed people has been reducing.
The retail market also expands when more businesses thrive, which gives the same
effect as the first business, causing more job openings in soc...


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