![](https://cashroadster.com/wp-content/uploads/2018/06/172871-unemployment-in-america-950x600.jpg)
America Faces Unique Situation as Unemployment Dips to 3.8%
![](https://cashroadster.com/wp-content/uploads/2018/06/172871-unemployment-in-america-950x600.jpg)
Getting a job in America has now become easier. The statistics show that there are now more job openings than there are workers, an almost unheard of phenomenon. The data shows that April was the second consecutive month where the odd happening persisted.
![](https://cashroadster.com/wp-content/uploads/2018/06/unemployment_rates-1516735372-1536.jpg)
The Jobs Openings and Labor Turnover Survey (JOLTS) shows that there were about 6.7 million open positions in April, a considerable record-breaking 65,000 increment from March
At present, data provided by the Bureau of Labor Statistics (BLS) shows that the number of vacancies available is truly well ahead of those who are unemployed. Notably, this is a first since the BLS started tracking JOLTS numbers in 2000.
In April, the total number of workers seeking and eligible for job openings dipped to 6.35 million, an incredible decrease from the 6.58 million recorded in the previous month. To truly put things in perspective, in May, the numbers further diminished to 6.06 million. It is important to note that there is not JOLTS comparable data for May.
Typically, when such situations occur, one would expect that the influx of job opportunities would result in the demand for higher wages. In truth, the average hourly earnings have risen by a meager 2.7 percent in May and were up by a tenth of a point in April.
Gap
![](https://cashroadster.com/wp-content/uploads/2018/06/more-bad-news.jpg)
The growing demand for workers means that they have gotten more bold in leaving current positions in pursuit of more rewarding opportunities
For quite a while now, employers have been making complaints about the apparent skills mismatch in the market, or the inability to find workers with adequate training for some of the job vacancies. Going forward, companies will need to find new incentives to retain existing members of staff whilst ensuring that they are able to pull new employees in.
The number of people calling it quits has now risen. April recorded the highest ever figures since 2005, at 2.3 percent. This figure is considerably higher than a year ago when it was placed at 2.1 percent. Remarkably, in 2010, the figures were a lowly 1.3 percent.
Barrera believes that while there are more people getting into jobs, there isn’t a lot of localized movement as people once used to. Conversely, this means that employers are not under pressure to raise the wages since they aren’t competing for job holders. Economists and policymakers at the Federal Reserve are said to be confounded by the recent happenings as they remain unsure how long the gap will take to be bridged. April was a particularly interesting inflection point because job openings and hires continue to be high despite the fact that labor markets keep getting closer to full employment.
Factors
![](https://cashroadster.com/wp-content/uploads/2018/06/bd0e8b51c823f28100d754abef2b47c7b6bbac8426503afd35a9aeb050a9d59c.jpg)
The changing demographics and an aging workforce are also being attributed as key contributing factors working against possible wage gains
As Jessica Rabe, co-founder of DataTrek Research put it, “This is the ongoing difficulty of employers finding suitable workers. The disparity between job openings and hiring is over a million again for the second month in a row. In terms of wages, it’s hard to increase wages when you don’t have the proper qualifications for a worker to fill that role.”
Historically, 2018 has presented the first time the unemployment rate has dropped to 3.8 percent since 1969. While that is an incredible statistic by itself, most people overlook some of the other dynamics in the equation. Estimates show that at present, those unaccounted as part of the labor force stands at a whopping 95.9 million. Marking a significant 21 percent rise over the last decade.
More inDriving
-
`
Selecting the Perfect Tire & Wheel Cleaner for Lasting Results
For car enthusiasts, a sparkling ride isn’t just a mode of transportation; it’s a canvas for their passion. And what better...
March 3, 2024 -
`
When Your Car Gets Scratched: What’s Next?
That sinking feeling in your gut when you hear a screech against your car’s paintwork, followed by the dreaded sight of...
February 24, 2024 -
`
Polishing vs Rubbing Compound. Who Wins the Ultimate Shinedown?
Imagine your car, not just clean, but gleaming. Sunlight dances off the paintwork, revealing a flawless mirror finish that turns heads...
February 16, 2024 -
`
Alone On Valentine’s Day? Treat Yourself With Binge-Worthy Car Movies (Ranked From Worst To Best)
Feeling alone on Valentine’s Day? Don’t fret! Instead of wallowing in solitude, why not indulge in some thrilling car movies that...
February 13, 2024 -
`
Explaining 5 Types of Car Scratches and How to Fix Them
Every car owner knows the sinking feeling that comes with discovering a new scratch on their beloved vehicle. Whether it’s a...
February 12, 2024 -
`
Want To Buy a Blue Corvette in 2025? Here’s How To Afford It
Owning a luxury sports car like the 2023 Corvette Stingray is a dream for many automotive enthusiasts. However, the financial commitment...
February 8, 2024 -
`
7 Interior Car Cleaning Products You Need in 2024
Maintaining a clean interior not only enhances the driving experience but also preserves the value of your vehicle. Investing in quality...
February 6, 2024 -
`
Lexus vs Toyota: How The Two Cars Compare in Terms of Luxury
In the automotive world, Toyota and Lexus stand as testaments to innovation, reliability, and luxury. Toyota, established in 1937, has long...
February 3, 2024 -
`
How to Use Rubbing Compound to Remove Car Scratches
Scratches and cracks on a vehicle can be a common but unwelcome sight for any car owner. Despite careful driving, these...
January 31, 2024
You must be logged in to post a comment Login