Friday, October 6, 2023, the U.S. jobs report showed a stronger than expected labor market alongside slowing wage gains. Employers added 336,000 jobs in September, the strongest gain since January and up sharply from the previous month’s upwardly revised 227,000 gain. The increase in average hourly earnings was modest and job gains may have been distorted by seasonal adjustments. Somehow this news was in line with what ITAD industry executives have told us.
In our latest sector survey, we found that while more than half reported no change in employment policy on a year-over-year basis, some 37% reported an increase in hiring, which in general terms bodes well for the industry as an employer. What appears to be the most interesting finding is that those reporting layoffs halved from more than 11% in the first quarter survey to only 5% in the second quarter survey. Are these figures proof of a sector in full recovery mode? Not quit.
The revenue data suggests that the sector remains under pressure, in particular as demand for products and parts in the secondary market has been weak. ITAD companies continue to experience labor and inflationary pressures and so both rising cost and competition for labor are continuing to weigh heavily on ITAD business. But looking at what’s coming at the end of 2023, could suggest a recovery is on its way.
