From April to December 2015, job openings in the United States reached all-time highs based on data collected by the U.S. Department of Labor. The number of people voluntarily leaving their jobs also hit record numbers. This bodes well for people looking to improve their career situations, as the supply and demand for workers continues to drive the labor market.
What Do the Statistics Show?
In April 2015, the number of jobs open at the end of the month hit 5.4 million. At the time, this was the most job openings available since the government began compiling these statistics in 2000. The figure rose to 5.75 million in July 2015 and then 5.6 million in December 2015. The number for July eclipsed analysts' predictions by more than 460,000 job openings.
During this same time period, from April to December 2015, millions of Americans voluntarily left their jobs in record numbers. The number of people quitting their jobs, as opposed to layoffs or firings, hit a seven-year high in January 2015. Quits rose to 3.1 million in December 2015, the highest for that figure since December 2006.
Hiring was also robust in 2015. In April of that year, 5 million people found jobs. An additional 5.18 million people earned new positions in July 2015, and 5.36 million workers got jobs in December 2015 during the strong winter holiday season. All of these job statistics point to a great future for job seekers.
Specific Sectors
A few sectors saw more job openings and hiring compared to others. In April 2014, job openings grew by 100,000 in the health care and social services sector. Another 88,000 jobs opened in trade, transportation and utilities. Another 44,000 jobs opened in the professional and business sector. This illustrates that a wide range of opportunities exist for workers among several different sectors.
What Do These Statistics Mean For Hiring?
The number of job openings helps economists measure the demand for labor. When companies hire more people, the overall economy is generally healthy, and businesses need more workers to meet the demands of customers. Small businesses and large corporations need more help when consumers have more money to spend on products and services. This creates a win-win scenario as companies hire more workers, people earn more money and unemployment goes down.
More jobs opened in 2015 as businesses reported higher sales and profits. Aside from companies expanding due to better sales, large numbers of job openings also takes into account people who willingly quit jobs. Quits are a good thing in an economy because workers leave lower-paying jobs for higher-paying (and better) positions. A combination of high job openings and high quits means people migrate to higher wages.
Firms may respond slowly to the labor market with regards to wages. In April 2015, hourly wages grew an average of 2.3 percent as compared to April 2014. In a healthy economy, wages generally increase 3.5 percent in one year. By the end of 2015, wages increased to 3 percent over December 2014 wages. Companies raised wages to attract the best workers in a highly competitive job market.
Greater demand for workers usually increases pay, but it also indicates employers may spend more time finding the right workers for each position. Matching the right person for the job decreases turnover rates, and firms spend less time hiring in the future. Therefore, employers may not fill positions as quickly as they become open.
Unfilled Positions
Hiring lagged behind job openings for a few reasons. One of these reasons includes a lack of qualified workers. As many as 29 percent of businesses could not fill positions in April 2015, the highest figure since December 2006.
Also, in April 2015, there were an average of 1.6 unemployed people per one job opening. The figure is way down from 6.7 unemployed workers per job opening in 2009 and down from 1.7 in March 2015. This reveals there are plenty of jobs for workers, so long as the qualifications and skills match the right person to the right job.
How Workers Can Respond
Obtaining more skills represents one thing workers can do to improve their job situation. Some people can take online classes or attend school part time to hone the skills employers want. Classes and online courses can lead to a degree or certification for a specific skill set.
Another good thing to do includes finding a job that matches well with a worker. Among all of the hiring and job opening data, companies are taking longer to hire people. This signals firms to take more time to find the right match for an employee. Job seekers should make a job search more efficient by applying for positions that match their qualifications, skills and education. Companies are more than willing to hire people for more money, provided these workers have the right qualifications.
Large amounts of job openings remain good for the economy. However, companies should be willing to train workers for positions moving forward, as firms need employees with varied skills. If they don't, job shortages may occur, and the economy could falter.
Photo Courtesy of Redfishingboat (Mick O) at Flickr.com
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