# Visualized: The State of the U.S. Labor Market
## Metadata
- Author:: [[Avery Koop]]
- Full Title:: Visualized: The State of the U.S. Labor Market
- Category: #articles
- URL: https://www.visualcapitalist.com/visualized-the-state-of-the-u-s-labor-market/
## Highlights
>  ([View Highlight](https://read.readwise.io/read/01gvbav7c2frvzs6xf7pf70zcn))
> The last time the U.S. labor market was this strong was in 1969. ([View Highlight](https://read.readwise.io/read/01gvbarabj0958dzd16s346sbm))
> Yet much of the wage increases were washed out by rising consumer prices. ([View Highlight](https://read.readwise.io/read/01gvbaw2rm219w3x21p6khq77k))
#### What is Driving the U.S. Labor Market?
> We are also seeing strong gains in transportation and warehousing. Last year, the sector added an average of 23,000 jobs, totaling almost 955,000 over the course of the pandemic. Today, trucking jobs exceed 2019 levels and warehouse employment is [roughly 50% higher](https://fred.stlouisfed.org/series/CES4349300001). ([View Highlight](https://read.readwise.io/read/01gvbat5gqp5hfqvpv3fv5bk4p))
> Although manufacturing hasn’t seen the highest gains, the sector has one of the lowest unemployment rates across job sectors, at 2.4% ([View Highlight](https://read.readwise.io/read/01gvbatnbng6h85p2c3pj0vdx8))
> if every skilled unemployed worker were to fill open job vacancies, a third of jobs in durable manufacturing would remain open. ([View Highlight](https://read.readwise.io/read/01gvbav1hm3cnkhqd57n2y5tq6))
#### Cooling Wage Growth
> Despite rock-bottom unemployment numbers, wage growth is slowing. In January, it fell to **4.4%** annually, down from a multi-decade high of 5.9% in March last year. ([View Highlight](https://read.readwise.io/read/01gvbaxh37e00r6rspyj0rrpsg))
>  ([View Highlight](https://read.readwise.io/read/01gvbay6mbxb4npqvfnzte7g7k))
> Typically, their annual wage growth target is **3.5%** to be compatible with 2% inflation. ([View Highlight](https://read.readwise.io/read/01gvbaytfkfyfsax41vy2c2ggp))
#### Where is the Job Market Heading?
> On the other hand, the pandemic has changed the labor market ([View Highlight](https://read.readwise.io/read/01gvbb10mt6wre9pg4m7vd1eb6))
> Relief legislation may continue to buoy the job market and workers may also remain scarce as people retire or leave for other reasons ([View Highlight](https://read.readwise.io/read/01gvbb0x02vwejqp3k6n3zbky6))
> Given how unemployment serves as a [lagging indicator](https://advisor.visualcapitalist.com/visual-guide-to-economic-indicators/), the material effects in the economy will likely appear before cracks begin to show in the U.S. labor market. ([View Highlight](https://read.readwise.io/read/01gvbb1f6zmjxt9fs0hqyv8msf))
# Visualized: The State of the U.S. Labor Market
## Metadata
- Author:: [[Avery Koop]]
- Full Title:: Visualized: The State of the U.S. Labor Market
- Category: #articles
- URL: https://www.visualcapitalist.com/visualized-the-state-of-the-u-s-labor-market/
## Highlights
>  ([View Highlight](https://read.readwise.io/read/01gvbav7c2frvzs6xf7pf70zcn))
> The last time the U.S. labor market was this strong was in 1969. ([View Highlight](https://read.readwise.io/read/01gvbarabj0958dzd16s346sbm))
> Yet much of the wage increases were washed out by rising consumer prices. ([View Highlight](https://read.readwise.io/read/01gvbaw2rm219w3x21p6khq77k))
#### What is Driving the U.S. Labor Market?
> We are also seeing strong gains in transportation and warehousing. Last year, the sector added an average of 23,000 jobs, totaling almost 955,000 over the course of the pandemic. Today, trucking jobs exceed 2019 levels and warehouse employment is [roughly 50% higher](https://fred.stlouisfed.org/series/CES4349300001). ([View Highlight](https://read.readwise.io/read/01gvbat5gqp5hfqvpv3fv5bk4p))
> Although manufacturing hasn’t seen the highest gains, the sector has one of the lowest unemployment rates across job sectors, at 2.4% ([View Highlight](https://read.readwise.io/read/01gvbatnbng6h85p2c3pj0vdx8))
> if every skilled unemployed worker were to fill open job vacancies, a third of jobs in durable manufacturing would remain open. ([View Highlight](https://read.readwise.io/read/01gvbav1hm3cnkhqd57n2y5tq6))
#### Cooling Wage Growth
> Despite rock-bottom unemployment numbers, wage growth is slowing. In January, it fell to **4.4%** annually, down from a multi-decade high of 5.9% in March last year. ([View Highlight](https://read.readwise.io/read/01gvbaxh37e00r6rspyj0rrpsg))
>  ([View Highlight](https://read.readwise.io/read/01gvbay6mbxb4npqvfnzte7g7k))
> Typically, their annual wage growth target is **3.5%** to be compatible with 2% inflation. ([View Highlight](https://read.readwise.io/read/01gvbaytfkfyfsax41vy2c2ggp))
#### Where is the Job Market Heading?
> On the other hand, the pandemic has changed the labor market ([View Highlight](https://read.readwise.io/read/01gvbb10mt6wre9pg4m7vd1eb6))
> Relief legislation may continue to buoy the job market and workers may also remain scarce as people retire or leave for other reasons ([View Highlight](https://read.readwise.io/read/01gvbb0x02vwejqp3k6n3zbky6))
> Given how unemployment serves as a [lagging indicator](https://advisor.visualcapitalist.com/visual-guide-to-economic-indicators/), the material effects in the economy will likely appear before cracks begin to show in the U.S. labor market. ([View Highlight](https://read.readwise.io/read/01gvbb1f6zmjxt9fs0hqyv8msf))