WHAT TO WATCH FOR…

Financial Friday-On The Mark for June 2023 will be themed: “2023 Grads: Looking for Work or just ‘Funployment?’…” and will feature call-in guest Dr. Joshua Kahn, Assistant Director of Research with the National Association of Colleges and Employers (NACE), headquartered in Bethlehem, PA. Mark Lawrence, host of On The Mark; his co-host John Shipman; Aimee Buehner of the Bowen Agency and I will discuss late-breaking labor news and other economic issues. However, we will take a deep dive into the Class of 2023 and their career prospects. This class of newly minted graduates has been through more ups-and-downs than any since the Class of 1942, whose high school started with the Great Depression and ended as the start as World War II loomed large in everyone’s mind.

Areas of the US Economy, such as tech and financial services, are beginning to groan under the persistent weight of high inflation and ten straight months rate hikes by the Federal Reserve. Despite this, the labor market remains strong. Analysts are predicting that the US Bureau of Labor Statistics’ Economic Situation Report for May 2023, being released just as the program goes On the Air will show:

1. The Labor Force continuing to ease from last month’s surprisingly strong report of 253,000 new jobs created. Economists estimate an increase of just 133,000, which would place this month in line with the monthly numbers experienced pre-pandemic.
2. The Hospitality & Leisure Sector should lead with the highest number of new jobs created. Other gaining sectors will be Construction and Education/Health Services. Financial Services and Manufacturing will lead the declining sectors. Big Tech shed more than 100,000 jobs in May which is why the new jobs created number is not higher.
3. Unemployment ticking up to 3.5% after last month’s lowest ever rate of 3.4%
4. Participation Rate will hold steady at 62.6%.
5. Wage rate increases continue to slow with an annual rate below 7.0% which is the lowest wage rate increase in more than three years. 

Questions for Dr. Kahn:

1. Based on your observations and research, how are the career opportunities looking for the Class of 2023?
2. Your data is impressive, now please give us your ‘compared to what?’ analysis. This year v/s 2022? How about comparisons with other previous graduating classes, any big shifts?
3. Chamber members are reporting to us that apprenticeships and internships have become two of their most potent workforce recruitment tools. What can you tell us about the state of the practice when it comes to these and other cutting-edge methods of reinforcing the College-to-Career pipeline and career readiness, in general?
4. We’re always interested in understanding more about the gender and racial differences and similarities found in the data. Maybe this is best described as diversity and equity? What does your data show and what might it mean? 

 
According to the Pennsylvania Department of Labor & Industry (workstats.dli.pa.gov.dashboards
/Pages/Labor-Stats.aspx) county-by-county report, Greater Susquehanna Valley counties each experienced some increase in unemployment rates; however, continuing to be among the lowest in the state as compared to all other counties. Montour dipped back to 3.5%, and Union steady at 3.8% together rounding out the ‘bottom dozen’ counties in the state. Continuing to be higher than the statewide average, Snyder was at 4.5% and Northumberland up to 4.9%. Pennsylvania’s unemployment was down slightly to 4.1%. Our state’s Participation Rate rose to 62.0% with a national Participation Rate of 62.6%.