U.S. job openings increased to a new high of 9.3 million

The number of job postings in the United States increased to a new high in April, as did the number of workers who voluntarily left their positions, highlighting strong labor demand and turnover as companies emerge from pandemic-related limitations and the economy rebounds.

The number of open jobs increased to 9.3 million for the month, the largest since statistics began in 2000, from an upwardly revised 8.3 million in March, according to the Labor Department's Job Openings and Labor Turnover Survey, or JOLTS, released Tuesday.

The number of unfilled jobs in accommodation and food services climbed by 349,000. Other services had a rise of 115,000 job postings, while makers of long-lasting items had a rise of 78,000. However, employment vacancies in education and the mining and logging industries have been reduced.

While businesses are recruiting as the economy recovers, child care duties, persisting health worries, skill mismatches, and increased unemployment benefits have deterred some Americans from returning to work. In April, the number of openings outpaced the number of employees by 3.2 million, the largest disparity on record.

Hiring problems have been so severe in recent months that half of the U.S. states have declared to phase out federal unemployment insurance programs early to encourage individuals to hunt for a job.

Schools will resume completely in the fall, and more individuals will be immunized against COVID-19. At least half of the adult population in the U.S. is completely immunized.

According to the most recent Labor Department jobs data, payrolls grew by 559,000 in May after increasing by 278,000 in April, indicating that recruiting efforts began to pay off last month. Nonetheless, the payroll total was lower than expected, leaving the labor market 7.6 million jobs short of pre-pandemic levels.

A broader labor market rebound will necessitate a greater rate of hiring in the leisure and hospitality sector, which has been worst hurt by pandemic lockdowns.

In the transportation, warehousing, and utility industries 49,000 people quit. The number of quits increased in the South, Midwest, and West. The quit rate jumped to an all-time high of 2.7 %in March, up from 2.5 %in March.

Policymakers and economists typically consider the quits rate to be an indicator of job market confidence. However, approximately 1.8 million women have left the work field since February 2020, primarily due to child-care issues.

Manufacturing job openings increased by 102,000 in April to a record 851,000, but hiring decreased.

Total hiring grew to 6.1 million in April, up from 6 million in March, but the hires rate remained at 4.2 %. Layoffs and discharges remained mostly unchanged.

With inputs from Bloomberg

Picture Credits: Al Jazeera