United Nations – Labour Markets

The labour markets in developed economies have been steadily recovering during the first three quarters of 2023, returning to pre-pandemic conditions. Employment rates have increased and unemployment rates have declined, except in the United Kingdom. Inactivity rates have also decreased across different age groups. However, labour shortages continue to be a challenge in certain occupations, and there are significant variations in employment and unemployment rates among countries. The United States has experienced resilient economic activity, with higher-than-expected growth rates in the first two quarters of 2023. The unemployment rate in the US remains near record lows, although it marginally increased in August due to previously inactive workers returning to the labour force. The total US employment figure has surpassed its 2019 level, but the labour force participation rate has not fully recovered to pre-pandemic levels for the entire working-age population. Despite positive developments in the US labour market, there are some concerns and risks. Certain sectors, such as construction, have seen declines in employment opportunities, and some large companies have conducted layoffs. The scale of job openings, hires, and separations has declined in most US industries, except for government positions. There has been a reduction in workers leaving their jobs, indicating a normalization of the high labour turnover caused by the pandemic. However, resignation rates remain high in sectors such as healthcare and hospitality, and labour shortages persist in certain occupations due to inadequate pay and inflexible hours. Overall, labour shortages are on a declining trend, but there are still challenges and risks in the labour market recovery. The pandemic-related restrictions on immigration have impacted the labour market dynamics.