The Job Openings and Labor Turnover Summary, aka “JOLTS report“, lags behind monthly employment reports by a month as the ‘hires‘ and ‘quits‘ are contrast against available job openings.
In the latest JOLTS report we find evidence why the May employment numbers were less than expected. The data shows the economy is expanding; businesses are hiring; and the reason for lower new hires has nothing to do with an economic slow-down. In essence, the labor market is tight, very tight, and Main Street businesses are having a hard time finding qualified workers.
According to the BLS stats overall job hiring in April was 5.9 million. That’s the largest number of people hired in the history of the JOLTS record-keeping (started in 2000). There are 7.45 million current job openings and only 5.82 million workers identified as unemployed. That means there are 1.63 million more jobs than available workers.
This is a clear indication expanding economic conditions and a near ‘full-employment‘ position for the overall labor market. Additionally the quits rate is 2.3 percent, reflecting that workers are: (a) being recruited away from current employment to jump to other businesses; and (b) worker are confident about getting a job, and jumping into new jobs for higher wages/benefits. As a result, the strong ‘quits’ rate has historically been a precursor KPI for future wage growth stats.
(via CNBC) The total number of workers hired rose to a new high in April, according to Labor Department data released Monday. But despite this, the amount of available jobs still vastly outnumbers unemployed workers.
Hirings increased to 5.9 million for the month, a gain of 240,000 from March, the Job Openings and Labor Turnover Survey indicated. The hiring rate rose to 3.9%, an increase of one-tenth of a percentage point. The total hirings was the most recorded in the data series’ history going back to December 2000.
On the openings front, the gap between vacancies and available workers continued to be huge.
Openings for the month actually decreased slightly, falling 25,000 to 7.45 million. However, workers that the Bureau of Labor Statistics classifies as unemployed declined by 387,000 to 5.82 million, leaving the gap at about 1.63 million. (more)
There has never been a better time for middle-class U.S. workers to explore a new job.
Many companies are adding incentives for new workers with a strong work ethic, including: higher wages, sign-on bonuses, higher benefits, work-time flexibility and training programs for qualified candidates.
The wage gains for blue-collar non-supervisory workers are far exceeding the wage growth for supervisory positions. This Main Street economic growth is specifically benefiting workers without college degrees; and in many cases the financial opportunity for skilled blue-collar jobs is far exceeding the benefits of college debt.
Despite the professional doomsayer predictions from the professional financial class of Wall Street investment punditry, Main Street is upbeat and consumer confidence is strong.
Never is the disconnect between Wall Street and Main Street more visible than in the predictions -vs- reality for the growing/strengthening American middle-class.
The professional financial punditry can’t explain it. Flummoxed academics run around bumping into walls amid economic numbers that continue to defy expectations. All caused by a simple return to common sense ‘America First’ MAGAnomics.
Low unemployment (3.6%); wages growing (+3.2%); inflation stable (1.6%). These measures all have a cumulative impact on paycheck-to-paycheck Americans. Prices for durable goods are stable and wage growth is exceeding inflation. That means more disposable income in the middle-class…DUH. When combined with the increased take home pay from lower tax rates, is exactly the intended outcome of MAGAnomics.