America Faces Unique Situation as Unemployment Dips to 3.8%
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.
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
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
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
-
`
The Ultimate Car Servicing Checklist Every Driver Should Know
Maintaining your vehicle regularly is essential for its performance and longevity. A well-executed car servicing checklist ensures safety, enhances fuel efficiency...
October 25, 2024 -
`
Car Warranty vs Insurance: How They Differ and Why Both Matter
Understanding the differences between a car warranty and car insurance can help ensure you’re fully protected on the road. While both...
October 25, 2024 -
`
The History of Cars through the Lens of Witold Rybczynski’s Garage
Witold Rybczynski, the renowned architecture writer, takes readers on a journey through the history of cars in his upcoming book, The...
October 18, 2024 -
`
Porsche Taycan Turbo GT Sets Record with 0-60 MPH in Under Two Seconds
The realm of high-performance vehicles has just witnessed a groundbreaking achievement with the Porsche Taycan Turbo GT. This remarkable electric car...
October 18, 2024 -
`
How to Find the Best Car Insurance With These Simple Steps
Finding the right car insurance policy doesn’t need to be overwhelming. Understanding your coverage needs and knowing how to compare policies...
October 12, 2024 -
`
How to Secure Car Insurance with No License Effortlessly?
Finding car insurance with no license may seem challenging, but it’s often a necessary step for many vehicle owners. Various circumstances—like...
October 10, 2024 -
`
Ferrari EV Launches with a Price Tag Over $500,000
Ferrari is set to make waves in the automotive world with the introduction of its first electric vehicle (EV), priced at...
October 5, 2024 -
`
How Much Does It Cost to Learn to Drive?
Learning to drive is an exciting milestone but comes with various costs that can add up quickly. So, how much does...
September 26, 2024 -
`
How Long Can You Go Without an Oil Change?
Maintaining your vehicle’s engine health is crucial for its longevity, and one of the simplest yet most important aspects of this...
September 17, 2024
You must be logged in to post a comment Login