U.S. job vacancies climb to a record high, and the number of layoffs hit a record low Business and Economic News
According to government data, the number of job vacancies in the United States rose slightly to a record 9.2 million in May.
The number of job vacancies announced by US employers for the second consecutive month hit a record high, highlighting the continuing hiring challenge, as the rebound in economic activity has generated high demand for workers.
The Job Vacancies and Labor Flow Survey (JOLTS) released by the US Department of Labor on Wednesday showed that the number of available jobs on the last day of May increased slightly to 9.2 million.
The number of Americans resigning in May fell from the record high in April, but remained at a high of 2.5% or 3.6 million.
JOLTS reports that the percentage of workers laid off in May hit a record low.
The data shows that the job market is tight. Employers struggling to fill job vacancies are doing their best to attract workers, from offering higher wages to including recruitment bonuses and other incentives in their recruitment plans.
In turn, many workers are confident about their chances of leaving their current positions to get higher salaries in other companies.
The government reported that the unemployment rate in the US in June was still 5.9% higher than the previous month’s 5.8%. last week.
Government data showed that employment growth accelerated in June, and companies added 850,000 jobs, the largest monthly increase since August last year.
Recruitment is accelerating, the coronavirus vaccination rate continues to climb, and COVID-19 restrictions, such as mask regulations and capacity restrictions in restaurants and venues, are constantly decreasing.
However, the lingering effects of the pandemic still prevent many potential workers from entering the labor market and are on the sidelines. Numerous other factors, such as parenting challenges, can also cause a shortage of workers.
Some people who have not yet returned to the labor market fear that they may contract the virus from contact with other people. Many older Americans also choose to retire earlier than planned before the pandemic.
At a time when millions of Americans are unemployed, the shortage of workers has puzzled some economists.
Some speculate that the $300 weekly federal unemployment benefit provides workers with a safety net to some extent, allowing them to delay returning to work until they find a suitable opportunity. Some states have discontinued this benefit, which will expire across the United States at the end of the summer.
According to JOLTS data from the Ministry of Labor, job vacancies in restaurants and hotels, education, and healthcare have increased. They have declined in the fields of construction, finance, transportation and storage.