US Job Openings Hit Record High in May

According to the latest Job Openings and Labor Turnover of the US Labor Department, job openings hit a third straight record high in May. As the economy continues to reopen, workers are holding more leverage, with more than 16,000 job openings.

Reports show that the total number of available jobs has now reached 9.2 million. The JOLTS also said that this is 31% higher than the February 2020 level when the pandemic hit globally. The numbers went above the March and April records of this year, although hiring went down in May with 5.9 million new hires compared to April’s 6 million. 

The data showed that the increase was seen in industries such as education, health care, food services, and hospitality. The reopening of the border and economy and the availability of vaccines may have led to economic activities and recoup. 

Sadly, businesses’ ability to hire falls behind consumer demands. This seems to strengthen job seekers’ bargaining power. Companies are now in a race to increase their headcount by offering higher wages, incentives, and bonuses to get the attention of applicants.

Unemployment Numbers Drop

The number of employees leaving their jobs voluntarily has seen a decrease in May. Almost all industries felt the decline as quit rates dropped to 2.5% or a whopping 3.6 million. Most of the resignations came from the restaurant and hotel industries.

On the other hand, more and more Americans are looking for new and better opportunities. The primary reason is that they now have the confidence in their abilities to find other work. 

Layoffs and Discharges

Meanwhile, the number of layoffs and discharges hit record lows of 0.9%, or around 1.4 million. These data are still higher as compared to the numbers and rates pre-pandemic. Workers are now seeing this demand as an opportunity to switch jobs.

The worker shortage may seem ironic in a time when millions are out of work. Factors such as coronavirus issues, childcare concerns, and jobless benefits may just be the culprit. However, these factors are expected to lessen shortly, which can pave the way for more job openings.

Vacancies and New Hires

Hiring for service industry jobs—retail workers, delivery drivers, food preparation workers, et al.—are on the rise. These are the jobs that were hard hit by the pandemic but are now seeing a demand, albeit reluctantly. 

While quit rates in the hospitality and food services were the highest in May, job openings have increased. Up to 1.2 million vacancies are up for grabs, while the retail industry boasts 974,000 job openings. New hires are also up in the two sectors, with 823,000 in retail trade and 1.4 million in food services and accommodation.

Also, in May, total hires went down to 5.93 million from the previous 6 million. Hire rates also went down by 4.1%, mostly in construction, professional, and government services.

Health care has seen an upward trend with 81,000 job openings, while accommodation and food services gained 89,000. Hiring at hotels and restaurants are now robust and stable.

Also, in the report, payrolls have seen an increase in June, by 850,000. This is proof enough that companies are becoming successful in filling their job vacancies. 

The report also showed that the total number of vacancies outpaced hires by 3.28 million. This record high of job openings is expected to see more hirings. Eventually, this trend will lead to employers having a hard time hiring and employees having more bargaining power.