Denver, Colorado – Economists are noticing a growing divide in America’s job market, with a clear demand for skilled workers contrasted by a lack of interest in hiring “knowledge-based” professionals.

Data reveals a higher unemployment rate among professional and business services workers, while those in manufacturing are experiencing lower rates of unemployment. This shift has led to what some experts describe as a “buyer’s market for brain and a seller’s market for brawn.”

The upcoming release of the latest monthly payroll data by the Bureau of Labor Statistics is anticipated to show a slower pace of job growth in April compared to March. Despite this, industries like healthcare, government, social work, travel, tourism, and certain manufacturing sectors continue to see growth in employment.

Although there is growth in certain industries, the overall labor market appears to be stagnant, with hiring rates remaining flat and little change in the rate of worker turnover. Economists at The Burning Glass Institute refer to this phenomenon as the “great stay.”

Consumer sentiment reflects concerns about the current labor market and future business conditions, with many feeling less optimistic about job availability and income stability. These sentiments are also echoed in surveys conducted by the New York Federal Reserve, showing increased pessimism about job security among respondents.

One reason for the sustained strength in payroll data is attributed to the rising participation rates in the workforce and increased immigration, providing a larger pool of labor for businesses seeking to hire. However, these trends are expected to wane in the future, according to experts.

Federal Reserve Chair Jerome Powell emphasized the central bank’s commitment to maintaining interest rates despite challenges in the labor market. Powell highlighted the importance of balancing economic growth with job creation as the Fed navigates the current economic landscape.

As the job market continues to evolve, experts are closely monitoring trends in unemployment, hiring rates, and business confidence to gauge the overall health of the economy. With uncertainties lingering, both businesses and workers are navigating a complex and dynamic labor landscape.