Job openings and the number of workers hit a record high in March, as the lack of available workers continued to put pressure on the US labor market.
The Labor Department on Tuesday reported a seasonally adjusted 11.5 million job openings in March, up from the previous month’s 11.3 million. The number of workers leaving their jobs in a single month rose to 4.5 million, which is slightly higher than the previous record in November of last year. Meanwhile, hiring cooled slightly from a month ago to 6.7 million hiring in March.
Separate projections from the private sector showed that labor demand remained red-hot during April. Jobs site ZipRecruiter said employers had about 11 million job opportunities last month.
According to the Labor Department, arts and entertainment as well as consumer-facing industries such as housing and food services had the highest rates of job openings in March. Employment opportunities in the healthcare industry were also near record highs.
Job postings at large employers—those with more than 5,000 employees—have more than doubled since February 2020, according to a ZipRecruiter analysis of Labor Department data. Manufacturing, retail, education and professional services saw the most growth. The inauguration reached its highest level on record in the South.
According to the Labor Department, total job openings in March exceeded the previous record of 11.4 million in December.
“The market for the biggest job-seekers shows no signs of cooling off,” said Julia Pollack, chief economist at ZipRecruiter. “As businesses face higher turnover, and the gap between demand for labor and supply continues to widen, businesses will continue to experience upward pressure on wages.”
The number of job openings continues to exceed the number of unemployed people in search of a job. According to the Labor Department, in March, there were about two job opportunities for every unemployed person. Since last spring the level of unemployed people looking for a job has surpassed opening.
Employers have had difficulty hiring from the limited pool of available workers, and millions are expected to be laid off indefinitely. This has also increased the salary.
Brian Simmons is a behavioral psychologist who started his own therapeutic services business in October 2020, treating patients with developmental disabilities such as autism.
Mr Simmons said he offered wages “much higher than the industry standard” to successfully compete for physician.
“I remember asking one of my current workers specifically how much money they would need in order to be happy and live,” Mr Simmons said. “Then they gave me a number and I said ‘Done.'”
Many people in the labor market are also finding that they have gained benefits, making it easier to change jobs.
Jeff Btuhan quit his job in December as an executive at an ad-technology company and took on a role working remotely for Tinuity, a marketing company based in New York City. The 45-year-old said he was attracted to the culture and flexibility of his current workplace.
“I had a baby during the pandemic, and I started to really evaluate what was best for me and my family. The flexibility of the workplace and the company’s values really played a part for me personally,” Mr Batuhan said.
Moving to a completely remote job allowed Mr Batuhan and his family to move from New York City to Fort Lauderdale, Fla., in March, where they have more living space, he said.
The tight labor market has helped record compensation benefits for workers while keeping inflation under pressure. Employees who change jobs often win double-digit pay increases.
According to the Labor Department, median hourly earnings for workers in the private sector were up 5.6% in March from a year earlier, growing significantly faster than the nearly 3% rate recorded a year before the pandemic began. Was.
“If the job market collapses significantly, we may not see the same level of wage growth and benefit expansion,” said Daniel Zhao, senior economist at job site Glassdoor.
Write Brian Mena [email protected] . Feather
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