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Not much changed in July job market, but cracks are showing in health care sector

Hiring in health care has helped propel the job market, but that momentum is slowing.

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“Health care has really been the only industry that has continued to power along,” said Daniel Zhao at Glassdoor.
“Health care has really been the only industry that has continued to power along,” said Daniel Zhao at Glassdoor.
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Later this week, there will be several data points about how the labor market is doing. The jobs report, with the unemployment rate, comes out on Friday. 

Wednesday, though, the Job Openings and Labor Turnover Survey for the month of July. 

The headline is that pretty much that very little has changed in any category; job openings, hiring, layoffs, quits. All of them are about the same as last month.

The job market is just kind of stuck. Not much is going on.

“If you have a job and you're very happy with it, things are peachy,” said Guy Berger, senior fellow at the Burning Glass Institute.

That’s because layoffs are low so losing a job is unlikely.

But people looking for a job, because they’re not happy with theirs or because they’re unemployed, are struggling.

“Man, it's tough. It's tough to find a job,” Berger said. “But that’s sort of been the picture for the past year. It has not fluctuated very much.”

Not in any dramatic way. The labor market has been cooling for months now though.

“Health care has really been the only industry that has continued to power along,” said Daniel Zhao at Glassdoor.

But now it looks like hiring in health care is starting to slow down, too.

“And that is concerning, because health care has been the reliable pillar of strength for the job market,” Zhao said. “If not for healthcare and social assistance, we would have actually had net job losses in each of the last three months.”

This slowdown in the health care industry is not just showing up in the JOLTS report. Zhao noted it’s also showing up in Glassdoor’s employee confidence survey — health care workers’ confidence is now below 50%. 

”We're seeing Black women in particular, having pretty significant job losses,” said Kate Bahn, chief economist at the Institute for Women’s Policy Research. “In the last six months they've lost over 300,000 jobs.”

Bahn pointed that Black women are over-represented in the care industry.

“Perhaps it is this weakening of the health care and social assistance sector that could be partially explaining what we're seeing happening to Black women,” Bahn said.

Fewer health care workers are quitting their jobs, too which Bahn said is a sign they don’t feel like they have as much power, or as many opportunities, as they used to. 

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