Job postings in the United States surged to near record highs in December, implying that the slowdown in employment growth at the close of last year was mostly due to labor shortages.
Job vacancies, a gauge of labor demand, increased by 150,000 to 10.9 million on December 31st, not far from the all-time high of 11.098 million set in July, according to the Labor Department’s monthly Job Openings and Labor Turnover Survey, or JOLTS report, released on Tuesday. Reuters polled economists, who predicted 10.3 million job openings.
Accommodation and food services, which reported an additional 133,000 job opportunities, led the almost wide increase. Vacancies in information, non-durable products manufacturing, and state and local government education also increased significantly.
However, job vacancies in banking and insurance, as well as wholesale trade, have fallen.
The rate of job opportunities remained steady at 6.8%. The number of people hired declined by 333,000 to 6.3 million. Professional and business services saw the biggest drop in hiring, with 159,000 positions lost. At 4.2 % , the hiring rate remained unchanged.
Last month, the government announced that non-farm payrolls grew by 199,000 jobs in December, the smallest gain in a year.
According to the JOLTS data, the number of persons quitting their jobs voluntarily fell by 161,000 in December to a still-high 4.3 million. In the healthcare and social support businesses, as well as the lodging and food services industries and construction, fewer people are quitting.
In the non-durable goods manufacturing business, however, there were more resignations. At 2.9 % , the quit rate remained unchanged. In the South, the number of people quitting has reduced.
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Source: XglobalMarkets
