US Job openings remain high even as the number of workers quitting increases

AFP
March 29, 2022

The number of job openings was little changed last month, while the number of people quitting jobs increased.

The Labor Department released its Job openings and labor summary on Tuesday, and job openings last month remained near record levels at 11.3 million on the last day of February. Quits increased to 4.35 million as the Great Resignation persisted.

The data released by the Labor Department serve as indicators of how much demand there is for workers in the U.S. economy and the extent to which employers are still struggling with labor shortages months after the economy began recovering from the Coronavirus pandemic.

While the gap between available positions and the unemployed grew even wider – an increasing number of Americans quit their jobs. The data shows that 4.35 million workers left in February, an increase of 94,000 from the previous month.

Federal Reserve officials watch the JOLTS report closely for signs of labor market slack. The extremely tight jobs picture has helped drive inflation higher, which in turn has pushed the Fed to start raising interest rates.

There are still roughly three million or so people who have not returned to the workforce, according to government data.

“Looking at how poorly our labor force has grown so far this year, if companies want to win the war for the talent they need to engage the people who may not be actively seeking work right now, or be the first option people see when they do return,” Ron Hetrick, a senior economist at Emsi Burning Glass, a data and research company, wrote in a note.

Economists are waiting eagerly for the Friday release of the BLS’s nonfarm payrolls count for March. Experts by Dow Jones are expecting growth of 490,000 and an increase in average hourly earnings of 0.4 percent for the month and 5.5 percent on a 12-month basis.