File photo: Restaurant advertising job appears to attract workers in Oceanside, California, United States, May 10, 2021. REUTERS / Mike Blake / File Photo
September 8, 2021
Washington (Reuters) -As layoffs rose moderately, employment in the United States hit an all-time high in July. This suggests that the sharp slowdown in employment last month was not due to weak demand for labor, but the inability to find workers.
The Ministry of Labor’s monthly job vacancies and turnover survey (JOLTS report) on Wednesday also shows that the number of workers who have voluntarily left their jobs is steadily increasing, demonstrating confidence in the labor market.
Jennifer Lee, Senior Economist at BMO Capital Markets in Toronto, said, “The struggle continues to find the right workers for the right roles.
Job vacancies, an indicator of labor demand, fell from 749,000 to 10.9 million on the last day of July, the highest level since the series began in December 2000., And l accommodation and food services industry.
Job vacancies increased in the Northeast, South, Midwest and West regions. Job vacancies rose from 6.5% in June to a record high of 6.9%, driven by mid-sized companies with 50 to 249 employees. The proportion of large firms with more than 5,000 employees has declined.
Employment fell from 160,000 to 6.7 million due to declines in retail trade, durable consumer goods and education services. Teaching employment in state and local governments has increased, as has federal employment. The hiring rate fell from 4.7% in June to 4.5%. Hiring rates have fallen in large companies with more than 5,000 employees.
The JOLTS report says that following a government report last Friday, the number of non-farm workers jumped 10.53 million in July, followed by an increase of just 235,000, the smallest increase since January. Has been shown.
The COVID-19 pandemic has disrupted the dynamics of the labor market, causing a labor shortage despite the official unemployment of 8.4 million people.
The lack of affordable child care, fear of getting infected with the coronavirus, generous federal unemployment benefits, pandemic-related pensions and career changes have been blamed for the disruptions.
The government-funded unemployment benefit expires on Monday and the job 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 may be reluctant to return to the workforce for some people. Employment is below the February 2020 peak of 5.3 million.
According to a JOLTS report, 107,000 people voluntarily left 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 transportation, warehousing, utilities and federal categories has decreased.
The smoking cessation rate remained unchanged at 2.7%. This is generally viewed by policymakers and economists as a measure of confidence in the labor market. Some economists have said the JOLTS report may put pressure on the Federal Reserve to announce when it will start cutting its monthly large-scale bond buying program.
Federal Reserve Chairman Jerome Powell confirmed an economic recovery underway last month, but what about plans to curtail asset purchases other than saying the US central bank could be “that year ” ? Also did not provide the signal to.
“The tango costs two. The problem of job creation seems reluctant to supply labor, not declining demand. Continued buying of federal bonds will get workers back to work. I would love to hear an economic theory that explains how to promote it, said Conrad Dequadros, senior economic advisor at Breen Capital in New York.
Leave and layoffs fell from just 105,000 to 1.5 million. As a result, the layoff rate fell 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)
US employment hits record high as employers compete for workers