Good News for Job Seekers as Job Openings Hit a 15-Year High

John Krautzel
Posted by in Career Advice


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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  • Nancy Anderson
    Nancy Anderson

    Thanks for the comments. @Jay there are so many sites out there to choose from. Just type in free courses and you will get millions of results. When you are weeding through them, try to look for comments from other students to make sure that it really is what you are looking for. @Kellen yes it is true that companies are taking much longer to hire these days. It makes it harder on everyone for sure.

  • Jay Bowyer
    Jay Bowyer

    I can see why I might greatly improve my chances of getting a job by learning new skills. Does anyone know a good resource or two for online courses, preferably accredited programs? I don't want to pay out of pocket for potentially meaningless qualifications, and I value a comprehensive, intelligent curriculum.

  • Kellen P.
    Kellen P.

    I really do think companies are taking longer to hire these days. In the last few years, I have seen this in action. One company I know of left key positions unfilled for months, waiting to hire the right person. This caused some serious morale issues. It's a vicious circle! Waiting to hire the right person might cause a ripple effect, annoying and alienating the current overworked employees.

  • CATHERINE S.
    CATHERINE S.

    I definitely was attracted to the health care field because of the growing demand for nurses and other health care workers. The great thing about the health care industry is that jobs can't be exported to foreign countries and, no matter what happens in the rest of the economy, there will always be a need for health care and nurses. Another interesting thing about this industry is that technology is constantly changing, which requires the workforce to change and expand their knowledge as well.

  • Nancy Anderson
    Nancy Anderson

    Thanks for the comments. @William this is nothing new - the work world has always been like this. I remember a time when IT couldn't hire enough people to fill their needs but now, today, it can be hard to find that IT position. Same is going to be true with healthcare and any other field. The needs for great workers will fluctuate depending upon the industry and the need for what the industry produces. It's tough to find a career that would be steady forever. @Jacob it's a great idea, in theory. Sadly companies do not want to invest in their employees that way since the future of the company is so uncertain. @Abbey thanks for that. I, too, am a lifelong student and I love it. Taking classes online is certainly a great way to increase your skills and knowledge in a private setting. Taking classes in the classroom is also fun and you meet some great people. Regardless of where you take classes, taking them is the key to adding more meat to your resume and more chances of being the next "You're Hired."

  • Abbey Boyd
    Abbey Boyd

    I am a strong advocate of learning new skills, no matter what position you find yourself in. There really is no such thing as knowing too much, and broadening your skills gives you a great advantage. Online classes are a favorite of mine, as they are generally flexible enough to allow you to work on them when it's most convenient for you. In addition, most community colleges offer evening classes to allow you to attend when you aren't at work. There is certainly a trend going on in higher education, in that they are trying to accommodate the working adults, making it easier to learn without giving up your current job.

  • Jacob T.
    Jacob T.

    It seems that if companies were really so desperate to hire qualified workers they would provide training to help close the skills gap. Rather than matching workers to jobs for which are are qualified, as recommended by the article, why not take workers with ambition and develop them into skilled, loyal employees? If we only took the jobs we had already done, career and wage growth would be forever stagnant.

  • William Browning
    William Browning

    What's the best way to approach your career if the job market shifts in the next 15 to 20 years? There's a shortage of manufacturing workers and health care workers. However, that may change by 2030. Once the health care industry needs fewer workers after baby boomers pass away, what happens to all of the people who don't have jobs anymore? They will have to come up with new careers later in life.

  • Katharine M.
    Katharine M.

    I've definitely noticed this uptick- I've been looking to leave my current job and definitely have been getting a lot more interviews than I did when I first moved to town in 2009- that was a depressing time! It's nice to have more options and flexibility- for one thing, it means I can hold out for something I really love.

  • Nancy Anderson
    Nancy Anderson

    Thanks for your comments. @Erin the job statistics indicate that companies are hiring and the unemployment rate is staying pretty stable. But you know, those numbers are not a reality because there are many unemployed who have just stopped looking. But it is true - I am seeing more help wanted and how hiring signs in my area also. @Tracy it is a whole new world out there if you have been out of the job hunt in awhile. The majority of applications are completed online and sent in to what seems like a black hole. What actually is happening is that your resume and cover letter are sent through applicant tracking software and scanned based upon what the hiring manager felt was important - those dreaded keywords. If you pass the ATS, then a human will usually read both your resume and your cover letter. It is true that age could be a factor in that we hear that and see it happening all of the time. Keep a log of the jobs you applied for. Research them and try to find a point of contact. That way you can call the company and find out about your application. Of course they may not be able to tell you or they will just say that they are reviewing resumes and they will get back to you if your resume is chosen but at least you tried. Shows initiative! All the best on your job search.

  • Erin H.
    Erin H.

    Nice article. I guess my only question is, if the job opening numbers are so high, why are so many people not working? It seems that unemployment statistics are not going down, so either a statistical matrix has changed or something is off. I have noticed a many new " now hiring" signs in my area, so I do believe that the job market is recovering. I also think that there are still too many people who are unemployed.

  • Tracy G.
    Tracy G.

    I would like to believe this statistic applies to my life. But I've been pursuing my job search in LA, and more recently in Charleston, for many months now. I'm extremely qualified, even at the executive level. But no movement. In LA, it seems to be age discrimination, since I'm 50. Also, the new trend of applying through an online portal makes it very difficult to properly pursue a position. You apply, then you have no idea what has happened. Does anybody read these resumes/cover letters? In any case, I wish EVERYBODY a wonderful new job, and I wish companies the success that comes with connecting with the great qualified talent that's actually
    out there!

  • Shannon Philpott
    Shannon Philpott

    It is really interesting to learn that many of these available positions are unfilled. The idea of enhancing skills is a great suggestion. Many community colleges offer continuing education classes for free or at a discounted rate for working professionals or people changing careers. Many colleges are even creating workforce development programs to bridge the gap and match students with partnering companies.

  • Lydia K.
    Lydia K.

    We hear a lot about companies with positions they can't fill, but is there really a shortage of qualified workers? I agree with a lot of the points @Shaday raises in her comment. There's a lot of job seeker commentary on the internet that indicates employers are still being quite picky about applicants. Maybe the DOL statistics are the beginning of a trend towards a job market shift, but I don't think we're there yet.

  • Nancy Anderson
    Nancy Anderson

    @Shaday I certainly do hear your frustration. We hear all of the time how companies can't find the people that are qualified to work in the positions. If this is true, the company needs to figure out what they need to accomplish their goals and maybe get with some of the local trade schools or colleges/universities and suggest adding a particular skill set to the program. If they can work jointly together, it's a win-win for everyone. The college gets the money for the course and the company gets a qualified employee.

  • Shaday Stewart
    Shaday Stewart

    I realized this isn't necessarily the author's viewpoint, but I have to disagree with the ongoing excuse of there being too many "unqualified workers." Qualified workers are everywhere, but companies are using machines to screen candidates. They ask pointless, irrelevant questions in interviews and dismiss many candidates on superficial grounds. They discriminate against older workers who can offer experience and ignore many younger workers for fear of having to provide any training.

    Employers seem impossible to please, which is why so many people are choosing to be entrepreneurs. If there are so many jobs, there shouldn't be so much unemployment. If there is a worker shortage, why are job searches more competitive than ever? The workers aren't unqualified to work. The companies are unqualified to recruit.

  • Nancy Anderson
    Nancy Anderson

    @Mike thanks for your comment. The answer to your question is that it depends. What do you want to do moving forward? Do you want to work on websites? Then HTML/CSS would be great to learn. Do you want to get into more advanced programming? There are so many computer programming languages out there now. You might be able to check the website and find out what programming language they do. Or maybe you can get a contact via Beyond or Linkedin and simply ask what they use.

  • Mike Van de Water
    Mike Van de Water

    So what do you think are the most important skills that you can learn from home going forward in the 2016 job market and beyond? I often find myself marveling at the amount of things out there that I can learn, and I have a hard time reigning myself in to just a couple items. This doesn't really help me gain skills that employers may be looking for. For example, there's a ton of computer languages out there, but which would you recommend taking the time to learn to make myself a more attractive applicant? Thanks!

  • Nancy Anderson
    Nancy Anderson

    @Cheryl thanks for your comment. Sadly it's very true. Not sure about the number of companies who use placement agencies. They use them so that they don't have to vet the applicant. The agency does all of the legwork; background checks and drug tests and they absorb all of the costs for that. So yes, they will happily take their cut whether it's 45% of not. The employee, once inside of the company, needs to start the selling process and requesting permanent placement. It's not up to the agency to do that. Not sure but I believe that many of the jobs placed by agencies are for skilled workers. I get calls all of the time from recruiters wanting to steal me away from my company. I truly believe that we, as job seekers, are in control. We need to tell the recruiters what we want; what we expect. Don't just take it lying down. Let the recruiter know, upfront, that you are seeking permanent placement as soon as possible and that you will not want to stay as a temp if there is no chance of getting placed. On the other side of that coin, placement agencies are a great way to go because you can find out if the company really is for you. I remember going on a temp placement for an ad agency. They did ads for catalogues. I was bored out of my mind! Needless to say, my time there was very short! Regardless of what you decide, we wish you all the best.

  • Cheryl Polek
    Cheryl Polek

    There may be more job openings, but employers are going through employment agencies, who take up to 45% of an employee's wages, rather than hiring an employee direct and paying them even half the difference between what the employee is making and what they are paying the employment agency. They want highly skilled employees with years of experience, but after the agency's cut, are paying entry level wages. This leads to dissatisfied employees who leave at the first opportunity. In addition, many of these job openings are NOT in the skilled sector, and pay minimum wage, jobs that were meant for teenagers to earn extra money and get some experience, not for an adult to try to support a family on. Finally, many firms who do hire direct hire always from outside, not promoting from within, because it is harder to find someone to fill that position that does not pay as much and they do not want to deal with underfilling. Until employers start appreciating talent again, paying a wage that says the employee is important, and showing some recognition for the employee's efforts with promotions and raises, this will still not be a good economy for employees.

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