US Bureau of Labour: 4.5 Unemployed Workers For Each Open Job Position
Although a month late, the US Bureau of Labour Statistics (BLS) has finally released the results of its Job Openings and Labour Turnover Survey (JOLT) for April.
According to the survey, the month of April was the worst on record since 2014, with job openings falling from 6.011 million to only 5.046 million. The majority of the drop in job openings was concentrated within the professional and business services, health care and social assistance, and retail trade, which all saw position declines of 309,000, 115,000, and 113,000 respectively. The sudden decline in job openings is magnified with the simultaneous drastic increase in unemployment levels; the result is an excess of nearly 18 million more unemployed Americans than there are available jobs, which translates to approximately 4.5 unemployed workers for each job posting,
To expand the gap between unemployment numbers and job openings even further, the number of new hires has also drastically fallen. According to the JOLT survey, new hires decreased from 5.111 million to 3.524 million in April, with the largest declines occurring in the professional and business services, accommodation and food services, and the construction industry.
However, the month of April also saw a decline in the number of layoffs. Compared to March data, layoffs and discharges fell from a record of 14.6 million to only 9.888 million. Coincidentally with a surge in layoffs, volunteer quitting has also fallen from 2.789 million to 1.786 million – which corresponds to the lowest level since 2010. The largest decreases in quitting were observed in the accommodation and food services industry, followed by the professional and business services industry.
Information for this briefing was found via the US Bureau of Labour Statistics and Advisor Perspectives. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
