“There are plenty of jobs available but people are choosing not to work!“– Paul Ebeling
Lots of US companies are boosting salaries in order to recruit workers as businesses work to fill job openings in an attempt to catch up with demands of the booming economy.
This has resulted in workers taking advantage of the strong demand for labor by quitting their old jobs in search of better opportunities.
The US Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey aka JOLTS, 3.87-M workers quit their jobs in June, which is close to the record set this past April of 3.99-M.
This represents 2.7% of the workforce in June, which is a fraction below April’s record rate of 2.8%.
Additionally, a record-high 69.3% called it quits in June, some finding more benefits slacking and smoking marijuana.
“Usually people leave their jobs when they find a better opportunity, and perhaps part of the high quits rate reflects the massive suburbanization trend that started during the pandemic,” says LTN economist Bruce WD Barren.
Although many of these people are accounted for in the 6.72-M hires that took place in June, job openings still set a new record of 10.02-M.
There were also 9.48-M unemployed workers during the frame, which means there were more job openings than unemployed workers for the 1st time since before the VirusCasedemic.
Labor demand keeps getting stronger due in large part to the economic policies put in place during The Trump Administration and continuing to foster the strongest economic recovery since WWII.
Mr. Barren, who follows this trend closely notes the Job seekers, both jobless and employed, are taking advantage of this situation with job switching near historic levels and nominal wages growing quickly. He expects the growth to continue at least through Y 2025.
Have a prosperous day, Keep the Faith!