Competition for jobs drops to lowest level in six years
Job seekers face less competition in labor market
Competition for jobs drops to lowest level in six years
August 12, 2014, 11:56 AM ET
By Ruth Mantell @RuthMantell
Job opportunities are cropping up for workers, and competition for spots is the lowest in six years, according to government data released Tuesday.
Openings at U.S. workplaces rose to 4.67 million in June – that’s the most since early 2001 — up from 4.58 million in May, the
U.S. Labor Department reported.
And even better from a job seeker’s point of view is that competition for spots is falling. With 9.5 million unemployed people in June, there were about two potential job seekers per opening – the narrowest ratio since April 2008. The fresh labor-market data is taken from the government’s monthly job openings and labor turnover survey (or JOLTS).
The rise in job openings points to "continued strong" gains in coming months, economists with Wells Fargo Securities wrote in a research note.
"The surge in job openings in recent months is another sign of a tightening labor market," according to the Wells note.
Unfortunately, the dropping ratio doesn’t mean that the labor market is in the clear. Some of the decline in the pool of unemployed workers is due to those who have simply given up on looking for a job and dropped out of the labor force.
Also, the labor market still deals out harsh penalties for job losers:
one-third of the unemployed, or 3.2 million people, have been looking for a job for at least half a year.
On a couple of brighter notes, the fresh JOLTS data signaled that the labor is continuing to heal:
- Hires increased to 4.83 million, the most since 2008. The level of hires was about 5 million when the recession began.
- Layoffs and firings remained low at 1.62 million, down from 1.79 million when the recession started.
- Monthly quits hit 2.53 million, the most since 2008.
The last point – about more workers quitting their jobs – is a good signal for consumer spending. That’s because workers leave their jobs when they have confidence in the economy, and confident workers are more likely to make purchases, including big-ticket items like a home.
Source:
http://blogs.marketwatch.com/capitolreport/2014/08/12/competition-for-jobs-drops-to-lowest-pace-in-six-years/