U.S. Jobs Record High as Employers Compete for Workers

File Photo: The restaurant advertising job appears to attract workers in Oceanside, California, USA, May 10, 2021. REUTERS / Mike Blake / File Photo

September 8, 2021

Lucia Mutikani

Washington (Reuters)-While layoffs increased moderately, US jobs hit a record high in July. This suggests that the sharp slowdown in employment last month was not due to weak labor demand, but to the failure to find workers.

Wednesday’s Ministry of Labor’s monthly job vacancies and turnover survey (JOLTS report) also shows that the number of workers who voluntarily quit their jobs is steadily increasing, demonstrating confidence in the labor market.

Jennifer Lee, Senior Economist at BMO Capital Markets in Toronto, said: “The ongoing struggle to find the right workers for the right roles continues.”

Job vacancies, an indicator of labor demand, surged from 749,000 to 10.9 million on the last day of July, the highest level since the series began in December 2000. , And the accommodation and food services industry.

Job vacancies have increased in the northeast, south, midwest and west regions. The job vacancies jumped from 6.5% in June to a record high of 6.9%, driven by mid-sized companies with 50-249 employees. The proportion of large companies with more than 5,000 employees has declined.

Employment fell by 160,000 to 6.7 million due to a decline in retail, consumer durables and education services. Educational employment in state and local governments has increased, as has federal employment. The hiring rate dropped from 4.7% in June to 4.5%. Hiring rates declined in large companies with more than 5,000 employees.

Labor Party

The JOLTS report said that following a government report last Friday, the number of non-farm payrolls surged 10.53 million in July, followed by only a 235,000 increase, the smallest increase since January. Was shown.

The COVID-19 pandemic has overturned the dynamics of the labor market, causing a labor shortage despite the official unemployment of 8.4 million people.

Lack of affordable childcare, fear of being infected with the coronavirus, generous federal unemployment benefits, pandemic-related retirement and career changes have been blamed for disruption.

The government-funded unemployment allowance expires on Monday and the labor crisis is expected to ease from September. A new school year is underway and most school districts offer face-to-face learning.

However, the proliferation of COVID-19 cases caused by delta variants of the coronavirus can hesitate to return to the workforce among some people. Employment is below the February 2020 peak of 5.3 million.

According to a JOLTS report, 107,000 people voluntarily quit their jobs in July, bringing the total to 4 million. This reflects an increase in the education sector of state and local governments as well as wholesale trade.

The number of people leaving the transport, warehousing, utilities, and federal categories has declined.

The smoking cessation rate remained unchanged at 2.7%. This is usually regarded by policy makers and economists as a measure of confidence in the job market. Some economists said the JOLTS report could pressure the Federal Reserve to announce when it would begin shrinking its large-scale monthly bond purchase program.

Federal Reserve Board Chair Jerome Powell confirmed an ongoing economic recovery last month, but what about plans to cut asset purchases other than saying that the US central bank could be “this year”? Also did not provide the signal of.

“Tango costs two. The problem of job creation seems to be reluctant to supply the labor force, not the decline in demand. Continued purchases of federal bonds will bring workers back to work. I would like to hear an economic theory that explains how to promote it, said Conrad Dequadros, Senior Economic Advisor at Breen Capital in New York.

Furloughs and dismissals increased from just 105,000 to 1.5 million. As a result, the layoff rate increased from 0.9% in June to 1.0%. There were 83 unemployed for every 100 jobs in July.

“Even if demand slows or falls, job seekers remain in a relatively favorable bargaining position,” said Nick Banker, Research Director at Indeed Hiring Lab.

(Report by Lucia Mutikani, edited by Paul Simao)

U.S. Jobs Record High as Employers Compete for Workers

Source link U.S. Jobs Record High as Employers Compete for Workers

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