Although US job openings declined from a record level in April, they remained elevated at approximately twice the number of Americans without jobs. This suggests that employers are still struggling to attract and retain employees.
According to the Labor Department’s JOLTS (Job Openings and Labor Turnover Survey) Wednesday, 11.4 million fewer positions were available than the 11.9 million that was revised upwardly in March. A Bloomberg survey of economists forecasted that there would be 11.35 million open positions.
The JOLTS report is a key indicator of tightness in the US labor market. Federal Reserve officials such as Chair Jerome Powell often refer to it as a sign that the economy can withstand higher rates without significant unemployment. The goal of policymakers is to decrease the demand for labor. This will help lower inflation and cool wage growth, but not tip the economy into recession.
Although the number of jobs is down, it shows that labor demand remains strong. The mismatch between labor supply and demand is causing wage growth to be high. Firms have difficulty hiring from a small pool of workers. There are some signs that such gains may be peaking. This is a good development for the Fed, but not for American workers.
The April quit rate of 4.4 million Americans was unchanged from the previous month. At 2.9%, the quits rate, which measures voluntary job-leaving as a percentage of total employment, was not affected.
In April, there were 1.9 jobs per unemployed person, slightly less than in March. In a speech this week, Christopher Waller, Fed Governor, mentioned the closely-watched ratio. He also stated that tighter policies won’t cause a significant increase in unemployment because the demand for workers will remain strong.
Post Title: US Job Openings Fall from Record But Remains Elevated
Posted Date: June 13, 2022
Author: USA Jobs