U.S. job openings vault to record high in March
U.S. job openings surged to a record high in March while hiring lagged, further evidence that a shortage of workers was hampering job growth.
The Labor Department’s monthly Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday also showed layoffs dropping to record lows in March. The report could put pressure on the White House to review the government-funded unemployment benefits program, including a $300 weekly supplement, which pays more than most minimum-wage jobs.
The benefits were extended until early September as part of President Joe Biden’s $1.9 trillion COVID-19 pandemic relief package approved in March. Alabama, Montana and South Carolina are ending government-funded pandemic unemployment benefits for residents next month.
U.S. job openings soar to highest level on record
U.S. EMPLOYERS posted a record number of available jobs in March, starkly illustrating the desperation of businesses to hire more people as the economy expands. Yet total job gains increased only modestly that month. / AP FILE PHOTO/KEITH SRAKOCIC
WASHINGTON (AP) – United States employers posted a record number of available jobs in March, illustrating starkly the desperation of businesses trying to fine new workers as the country emerges from the pandemic and the economy expands.
Yet total job gains increased only modestly, according to a Labor Department report issued Tuesday. The figures follow an April jobs report last week that was far weaker than expected, largely because companies appear unable to find the workers they need, even with the unemployment rate elevated at 6.1%.
The number of vacancies exceeded hires by more than 2 million, the largest gap on record and evidence of current hiring challenges. Many employers say they are unable to fill positions because of ongoing fears of catching the coronavirus, child-care responsibilities and generous unemployment benefits.
The number of vacancies is consistent with accelerating demand as the economy reopens, with many companies trying to fill positions lost during the pandemic.
The number of people who voluntarily left their jobs increased to 3.51 million, while the quits rate held at 2.4 percent. Separations, which include layoffs and quits, decreased to 5.32 million from 5.43 million as dismissals declined.
Total separations declined, falling by 107,000 to 5.32 million.
The total number of employment opportunities set a new standard for the Job Openings and Labor Turnover Survey, which goes back to December 2000.
The report comes amid growing concerns about employers being able to find enough workers to fill openings, which in turn could make the economic recovery slower than anticipated.
The JOLTS report, combined with other recent indicators, show that labor shortages are widespread, pushing up prices and potentially acting as a brake on the recovery, wrote Michael Pearce, senior U.S. economist at Capital Economics.
In a recent note, Goldman Sachs economists noted that labor supply appears to be tighter than the unemployment rate suggests, likely reflecting the impact of unusually generous unemployment benefits and lingering virus-related impediments to working.
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