Tag Archives: Job openings

U.S. job openings vault to record high as employers scramble for workers

By Lucia Mutikani

WASHINGTON (Reuters) -U.S. job openings raced to a new record high in July while layoffs rose moderately, suggesting last month’s sharp slowdown in hiring was due to employers being unable to find workers rather than weak demand for labor.

The Labor Department’s monthly Job Openings and Labor Turnover Survey, or JOLTS report, on Wednesday also showed a steady increase in the number of workers voluntarily quitting their jobs, a sign of confidence in the labor market.

“This is a super tight job market,” said Jennifer Lee, a senior economist at BMO Capital Markets in Toronto. “The ongoing struggle to find the right worker for the right role continues.”

Job openings, a measure of labor demand, jumped 749,000 to 10.9 million on the last day of July, the highest level since the series began in December 2000. The broad increase in vacancies was led by the health care and social assistance, finance and insurance, and accommodation and food services industries.

Job openings rose in the Northeast, South, Midwest and West regions. The job openings rate surged to a record 6.9% from 6.5% in June, driven by medium-sized businesses with 50-249 employees. The rate for large firms with 5,000 or more employees fell.

Hiring slipped 160,000 to 6.7 million, pulled down by decreases in retail trade, durable goods manufacturing and educational services. State and local government education hiring increased, as did federal government employment. The hiring rate fell to 4.5% from 4.7% in June. The hires rate dropped for large businesses with 5,000 or more employees.

LABOR CRUNCH

The JOLTS report followed in the wake of a government report last Friday that showed nonfarm payrolls increased by only 235,000 jobs in August, the smallest gain since January, after surging by 1.053 million in July.

The COVID-19 pandemic has upended labor market dynamics, creating worker shortages even as 8.4 million people are officially unemployed.

Lack of affordable childcare, fears of contracting the coronavirus, generous unemployment benefits funded by the federal government as well as pandemic-related retirements and career changes have been blamed for the disconnect.

The labor crunch is expected to ease starting in September, with the government-funded unemployment benefits having expired on Monday. The new school year is underway and most school districts are offering in-person learning.

But soaring COVID-19 cases, driven by the Delta variant of the coronavirus, could cause reluctance among some people to return to the labor force. Employment is 5.3 million jobs below its peak in February 2020.

The JOLTS report also showed 107,000 people voluntarily quit their jobs in July, lifting the total to 4.0 million. That reflected increases in the wholesale trade as well as state and local government education areas.

There were decreases in the number of people quitting in the transportation, warehousing, utilities and federal government categories.

The quits rate was unchanged at 2.7%. It is normally viewed by policymakers and economists as a measure of job market confidence. Some economists said the JOLTS report could put pressure on the Federal Reserve to announce when it would start scaling back its massive monthly bond-buying program.

Fed Chair Jerome Powell last month affirmed the ongoing economic recovery, but offered no signal on when the U.S. central bank plans to cut its asset purchases beyond saying it could be “this year.”

“It takes two to tango and the problem with job creation would appear to be a reluctance to supply labor, not a diminishment of demand, and we would love to hear the economic theory that explains how continued Fed bond purchases encourage workers to return to work,” said Conrad DeQuadros, a senior economic advisor at Brean Capital in New York.

Layoffs and discharges rose a modest 105,000 to 1.5 million. That lifted the layoffs rate to 1.0% from 0.9% in June. There were 83 unemployed workers for every 100 job openings in July.

“Even if demand slows down or even falters, job seekers remain in a relatively favorable bargaining position,” said Nick Bunker, director of research at Indeed Hiring Lab.

(Reporting by Lucia MutikaniEditing by Paul Simao)

U.S. job openings surge to new record high, hiring rises

WASHINGTON (Reuters) -U.S. job openings jumped to a fresh record high in June and hiring also increased, an indication that the supply constraints that have held back the labor market remain elevated even as the pace of the economic recovery gathers momentum.

Job openings, a measure of labor demand, shot up by 590,000 to 10.1 million on the last day of June, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS report, on Monday.

Hiring also rose to 6.7 million in June from 6.0 million in the prior month. The government reported on Friday that job growth accelerated in July as U.S. employers hired the most workers in nearly a year and continued to raise wages.

Economists polled by Reuters had forecast job openings would rise to 9.28 million in June. Vacancies increased in all four regions and the job openings rate rose to 6.5% from 6.1%.

The high number of job openings has been fueled by the speed from which the economy has emerged from the depths of the COVID-19 pandemic, which upended many businesses as restrictions and fears of the virus kept people home.

But the number of people re-entering the workforce has lagged job openings. Generous unemployment benefits, childcare issues and lingering worries about the virus may all have played a part, with economists generally expecting a bump in hiring as schools reopen and crisis-era unemployment benefits come to an end.

The largest increases in vacancies in June were in professional and business services, retail trade and accommodation and food services.

The rise in hiring was led by retail trade, with 291,000 more positions filled, while state and local government education filled 94,000 jobs.

Worries remain, however, that a resurgence in infections, driven by the Delta variant of the coronavirus, could once again discourage some unemployed people from returning to the labor force.

The report also showed the number of people voluntarily leaving their employment in June increased to 3.9 million from 3.6 million in May. The quits rate is usually seen as a barometer of job market confidence. The number of people quitting their jobs is well above pre-pandemic levels.

(Reporting by Lindsay Dunsmuir; Editing by Paul Simao)

U.S. job openings jump to two-year high in boost to labor market

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. job openings rose to a two-year high in February while hiring picked up as strengthening domestic demand amid increased COVID-19 vaccinations and additional pandemic aid from the government boost companies’ needs for more workers.

The Labor Department’s monthly Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday was the latest indication that the labor market had turned the corner after shedding jobs in December as the nation buckled under a fresh wave of COVID-19 infections and depleted government relief.

“Labor demand should continue to heat up as companies brace for a post-pandemic burst in pent-up demand,” said Lydia Boussour, lead U.S. economist at Oxford Economics in New York.

Job openings, a measure of labor demand, increased 268,000 to 7.4 million as of the last day of February. That was the highest level since January 2019 and pushed job openings 5.1% above their pre-pandemic level.

The second straight monthly rise in vacancies lifted the jobs openings rate to a record 4.9% from 4.7% in January.

There were an additional 233,000 job openings in the health care and social assistance industry. Vacancies in the accommodation and food services sector, one of the industries hardest hit by the pandemic, increased by 104,000 jobs. Arts, entertainment and recreation job openings rose 56,000.

But vacancies decreased in state and local government education as well as educational services and information.

Economists polled by Reuters had forecast job openings would rise to 6.995 million in February. The report followed on the heels of news on Friday that the economy added 916,000 jobs in March, the most in seven months.

The labor market is being boosted by an acceleration in the pace of COVID-19 vaccinations and the White House’s recently passed $1.9 trillion pandemic relief package, which is sending additional $1,400 checks to qualified households and fresh funding for businesses.

Demand for labor could increase further as more services businesses reopen. The U.S. Centers for Disease Control and Prevention said on Friday fully vaccinated people could safely travel at “low risk.”

An Institute for Supply Management survey on Monday showed services businesses reporting they “have recalled everyone put on waivers and made new hires” and had “additional employees added to service the needs of new customers at new locations.”

STIFF COMPETITION

In February, hiring rose 273,000, the largest gain in nine months, to 5.7 million. That boosted the hiring rate to 4.0% from 3.8% in January. Hiring was led by the accommodation and food services industries, which increased by 220,000 jobs. But hiring decreased in state and local government education.

Hiring still has a long way to go, with employment 8.4 million jobs below its peak in February 2020.

“The labor market continues to improve but remains a long way from what the Federal Reserve would describe as the conditions to restore maximum employment,” said John Ryding, chief economic advisor at Brean Capital in New York.

The U.S. central bank has signaled it would maintain its ultra-easy monetary policy stance for a while to allow complete healing.

With unemployment well above pre-pandemic levels, competition for jobs remains tough. There were 1.4 unemployed people for every open job in February, well above 0.82 on the eve of the first wave of the pandemic lockdowns 12 months ago.

“This means employers will have an easier time hiring, but job seekers still don’t have the bargaining power they did prior to the pandemic,” said Nick Bunker, director of research at Indeed Hiring Lab.

Layoffs increased to 1.8 million from 1.7 million in January amid job cuts in the finance and insurance industry. The layoffs rate was unchanged at 1.2%.

Risks remain to the brightening labor market outlook.

“New strains of the virus and unwillingness to abide by health recommendations could extend the impact of the pandemic on the economy,” said Sophia Koropeckyj, a senior economist at Moody’s Analytics in West Chester, Pennsylvania. “In addition, the severity of the downturn, which closed many business, means that many industries will not bounce back immediately.”

The number of people voluntarily quitting their jobs rose to 3.4 million from 3.3 million in January. The quits rate was unchanged at 2.3%.

The quits rate is normally viewed by policymakers and economists as a measure of job market confidence. But the pandemic has forced millions of women to drop out of the labor force mostly because of problems related to child care, with many schools still only offering online learning.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

U.S. job openings edge up in December, hiring declines

WASHINGTON (Reuters) – U.S. job openings increased marginally in December while hiring declined, pointing to a labor market that was treading water amid a raging COVID-19 pandemic.

Job openings, a measure of labor demand, rose to 6.65 million on the last day of December from 6.572 million in the previous month, the Labor Department said on Tuesday in its monthly Job Openings and Labor Turnover Survey, or JOLTS report. The job openings rate ticked up to 4.5% from 4.4% in November.

Hiring dropped to 5.54 million from 5.94 million in November. The hiring rate declined to 3.9% from 4.2% in November. Layoffs decreased to 1.81 million in December from 2.056 million in the prior month. That lowered the layoffs rate to 1.3% from 1.4% in November.

The JOLTS report followed on the heels of news last Friday that the economy created only 49,000 jobs in January after shedding 227,000 jobs in December. Employment is 9.9 million jobs below its peak in February 2020.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

U.S. job openings fall in November; layoffs rise

WASHINGTON (Reuters) – U.S. job openings fell in November, while layoffs mounted at restaurants and hotels amid rampant COVID-19 infections, supporting views that the labor market recovery from the pandemic was stalling.

Job openings, a measure of labor demand, dropped 105,000 to 6.527 million on the last day of November, the Labor Department said on Tuesday in its monthly Job Openings and Labor Turnover Survey, or JOLTS. Vacancies have dropped from as high as 7.012 million in January.

The job openings rate slipped to 4.4% from 4.5% in October. Layoffs increased 295,000 to nearly 2.0 million. That lifted the layoffs rate to 1.4% from 1.2% in October. Layoffs were led by the accommodation and food services industry, which shed 263,000 workers. A resurgence in coronavirus cases has led to widespread curbs on businesses, with restaurants and bars hardest hit.

There were 42,000 job losses in the healthcare and social assistance sector. State and local governments, which are experiencing tight budgets because of the pandemic, laid off 21,000 workers.

Hiring was little changed at 5.979 million. The hiring rate was steady at 4.2%.

The JOLTS report followed on the heels of news last Friday that the economy shed 140,000 jobs in December, the first decline in nonfarm payrolls since April, after adding 336,000 positions in November. The economy has recovered 12.4 million of the 22.2 million jobs lost in March and April.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

U.S. job openings, hiring fall in May

FILE PHOTO: Job seekers line up at TechFair in Los Angeles, California, U.S. March 8, 2018. REUTERS/Monica Almeida

WASHINGTON (Reuters) – U.S. job openings fell in May, pulled down by declines in the construction and transportation industries, potentially flagging a slowdown in employment growth in the months ahead.

Job openings, a measure of labor demand, slipped by 49,000 to a seasonally adjusted 7.3 million in May, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS on Tuesday. The job openings rate dipped to 4.6% from 4.7% in April.

Hiring dropped by 266,000 to 5.7 million in May, with the biggest decrease in the professional and business services industry. The hiring rate fell to 3.8% from 4.0% in April.

Nonfarm payrolls surged by 224,000 jobs in June after increasing only by 72,000 in May, the government reported last Friday. The unemployment rate rose one-tenth of a percentage point to 3.7% as more people entered the labor market, a sign of confidence in their employment prospects.

(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)

U.S. job openings dip as hiring hits record high

FILE PHOTO: Job seekers speak with potential employers at a City of Boston Neighborhood Career Fair on May Day in Boston, Massachusetts, U.S., May 1, 2017. REUTERS/Brian Snyder

WASHINGTON (Reuters) – U.S. job openings fell slightly in April as hiring surged to a record high, government data showed on Monday.

Job openings, a measure of labor demand, slipped to a seasonally adjusted 7.4 million from 7.5 million in March, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS. The job openings rate was unchanged at 4.7%.

Hiring jumped by 240,000 jobs in April to 5.9 million, the highest level since the government started tracking the series in 2000. The hiring rate increased to 3.9% from 3.8% in March.

The economy created 75,000 jobs in May after adding 224,000 positions in April, the government reported last Friday.

The unemployment rate was unchanged near a 50-year low of 3.6%.

(Reporting by Lucia Mutikani; Editing by Susan Thomas)

U.S. job openings hit 11-month low; quits rate stagnates

FILE PHOTO: A "Help Wanted" sign sits in the window of a shop in Harvard Square in Cambridge, Massachusetts, U.S., February 11, 2019. REUTERS/Brian Snyder/File Photo

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. job openings dropped to an 11-month low in February and hiring decreased, which could partially explain a sharp slowdown in job growth during that month.

Still, the labor market remains a pillar of support for the economy amid signs that activity was easing because of the fading boost from a $1.5 trillion tax cut package and the effects of interest rate increases over the last few years. The economy is also facing headwinds from slowing global growth and the United States’ trade war with China.

“The February job openings data reinforced that the labor market weakened in February but there isn’t any cause for concern,” said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania.

Job openings, a measure of labor demand, tumbled by 538,000 to a seasonally adjusted 7.1 million, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS, report on Tuesday. The drop was the biggest since August 2015. The level was the lowest since March 2018.

Vacancies in the accommodation and food services industry fell by 103,000 jobs in February. There were 72,000 fewer job openings in the real estate and rental and leasing sector. Job openings in the transportation, warehousing and utility sector dropped by 66,000.

Nonfarm payrolls increased by only 33,000 jobs in February, the fewest since September 2017. The near-stall in job gains was partially blamed on colder weather and also viewed as payback after robust increases in December and January.

Job growth picked up in March, with the economy creating 196,000 positions, the government reported last Friday.

WORKERS STILL SCARCE

The drop in job openings in February likely does not change the theme of labor shortages in the economy. A survey of small businesses published on Tuesday found that just over a fifth of owners reported difficulties finding qualified workers as their “single most important business problem” in March.

According to the survey from the NFIB, 39 percent of small business owners reported job openings they could not fill in March. Thirty-three percent said they had openings for skilled workers and 14 percent have vacancies for unskilled labor.

Economists expect monthly job growth to average roughly 150,000 this year, stepping down from 223,000 in 2018.

“There are still millions of help wanted signs out there in the country so we hesitate to revise our outlook for the labor market overall,” said Chris Rupkey, chief economist at MUFG in New York.

The dive in job openings in February pushed down the vacancies rate to 4.5 percent from 4.8 percent in January. Hiring fell to 5.7 million in February from 5.8 million in the prior month. The decrease in hiring was led by the construction sector, where hiring fell by 73,000.

Hiring in the nondurable goods manufacturing industry dropped by 33,000 in February. Hiring by state and local government education departments fell 22,000.

The number of workers voluntarily quitting their jobs was little changed at 3.5 million in February, keeping the quits rate at 2.3 percent for a ninth straight month.

The quits rate is viewed by policymakers and economists as a measure of job market confidence. The worker reluctance to switch jobs is despite the tight labor market conditions that are steadily driving up wages.

“This is not as many quits as you would expect in such a tight labor market, when workers are in higher demand,” said Nick Bunker, an economist at Indeed Hiring Lab. “Though perhaps this isn’t surprising in the short term given that the ratio of unemployed workers to job openings has been rising.”

Layoffs increased in February, lifting the layoffs rate to 1.2 percent from 1.1 percent in January. There were increases in layoffs in the professional and businesses services, and healthcare and social assistance sectors in February.

(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci)

U.S. job openings hit record high; workers more scarce

Corporate recruiters (R) gesture and shake hands as they talk with job seekers at a Hire Our Heroes job fair targeting unemployed military veterans and sponsored by the Cable Show, a cable television industry trade show in Washington, June 11, 2013. REUTERS/Jonathan Ernst/File Photo

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. job openings surged to a record high in December, led by vacancies in the construction and accommodation and food services sectors, strengthening analysts’ views that the economy was running out of workers.

While the release of the Labor Department’s monthly Job Openings and Labor Turnover Survey, or JOLTS, on Tuesday underscored labor market strength, there are worries the shortage of workers could hurt an economic expansion that has lasted 9-1/2 years and is the second longest on record.

“The labor market continues to heat up,” said Chris Rupkey, chief economist at MUFG in New York. “But growth cannot continue for much longer if there is no one out there to work in the factories and shops and malls across America.”

Job openings, a measure of labor demand, increased by 169,000 to a seasonally adjusted 7.3 million in December, the highest reading since the series started in 2000. That lifted the job openings rate to 4.7 percent from 4.6 percent in November.

Construction vacancies increased by 88,000 jobs in December. There were an additional 84,000 jobs in the accommodation and food services sector. Job openings in the healthcare and social assistance sector rose by 79,000 in December.

Federal government vacancies, however, fell by 32,000 jobs and job openings in real estate, rental and leasing dropped 31,000 in December.

Hiring continued to lag job openings in December, rising to 5.9 million from 5.8 million in November. That further widened the gap between vacancies and hiring, which emerged in 2015, reflecting tightening labor market conditions. There were 1.2 job openings for every unemployed person in December.

ROBUST LABOR MARKET

Anecdotal evidence has been growing of companies experiencing difficulties finding workers. A survey of small businesses published on Tuesday found that almost a quarter of owners reported that difficulties finding qualified workers as their “single most important business problem” in January.

According to the survey from the National Federation of Independent Business, 35 percent of small business owners reported job openings they could not fill in January.

The labor market has enjoyed a record 100 straight months of job gains, with nonfarm payrolls increasing by 304,000 jobs in January, the most since February 2018. But as workers become more scarce, job growth is expected to slow to around 150,000 per month this year.

Economists believe the dearth of workers will drive up wage growth, even though the number of workers voluntarily quitting their jobs has remained steady.

“The diminishing availability of workers is expected to lead to more upward pressure on wages, bring more workers into the labor force and induce more companies to find ways to produce and service their customers with automated processes,” said Sophia Koropeckyj, a senior economist at Moody’s Analytics in West Chester, Pennsylvania.

The JOLTS report showed the number of workers voluntarily quitting their jobs was little changed at 3.5 million in December, keeping the quits rate at 2.3 percent for a third straight month. The quits rate is viewed by policymakers and economists as a measure of job market confidence.

There were increases in the number of workers quitting their jobs in professional and business services and in the health care and social assistance sectors. But these were offset by declines in several industries and the government.

“With a labor market this tight, you may expect the quits rate to be going up or at a higher level already,” said Nick Bunker, an economist at Indeed Hiring Lab. “The big question is whether this a temporary lull, or if the quits rate has hit its high point.”

Layoffs fell in December, pushing the layoffs rate down to 1.1 percent from 1.2 percent in November.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

U.S. job openings hit record high of 6.7 million in April

FILE PHOTO: A man carrying a stack of job listings listens to a discussion at the One Stop employment center in San Francisco, California, August 12, 2009. REUTERS/Robert Galbraith/File Photo

WASHINGTON (Reuters) – U.S. job openings rose to a record high in April, but hiring continued to lag, pointing to a worsening shortage of workers.

Job openings, a measure of labor demand, increased to a seasonally adjusted 6.7 million from 6.6 million in March, the Labor Department said on Tuesday in its monthly Job Openings and Labor Turnover Survey, or JOLTS.

That was the highest level since the government started tracking the series in December 2000. The number of hires rose to 5.6 million in April from 5.5 million in the prior month.

The labor market is viewed as being either near or at full employment, with the jobless rate at an 18-year low of 3.8 percent.

(Reporting by Lucia Mutikani; Editing by Paul Simao)