The monthly jobs report released on Tuesday shows a stronger job market than expected. Job openings remained nearly unchanged in June compared to the previous month, according to the Labor Department.
Forecasts projected 8 million job openings in June, but they came in higher when the data was compiled. In June there were 8.2 million job openings and 6.8 million people unemployed.
The latest report shows employers hired 5.3 million people, the fewest since April of 2020, a time when COVID-19 ravaged businesses and the economy.
“The number of jobs added per month is around 222,000. A little over a year ago we were adding many, many more jobs than that, but that was part of the reopening of the economy and something that was not sustainable. So the good news right now is the job market is in a sustainable condition,” Bankrate Senior Economic Analyst Mark Hamrick said.
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While unemployment remains low, the number of people quitting their job slid to 3.3 million. The quit rate is a benchmark for worker confidence.
“I think that this really is emblematic of workers not having overconfidence, but also having a bit of caution — thinking about, 'well, what is my level of job security right now?'” Hamrick said.
Layoffs came down to 1.5 million in June, down from 1.7 million in May. The decrease was felt in finance and insurance.
The U.S. Chamber of Commerce analyzed worker shortage trends and found across the nation there are 83 workers for every 100 open positions. In North Dakota there are 35 workers for every 100 jobs.
The U.S. Chamber of Commerce is calling the situation a “worker shortage crisis,” but Hamrick interprets the data differently.
“I think it’s a bit much to call it a worker crisis. What we need is an ample supply of talent and skills to essentially make the economy run and at 4.1% unemployment rate, that suggests that the job market is still strong, but not as tight as it was before," he said.
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Hamrick said the job market resembles pre-pandemic levels.
“As long as the unemployment rate is in line with historical norms, it's historically strong right now, but it has been weakening,” Hamrick said.
In early June, Jerome Powell, the chairman of the Board of Governors of the Federal Reserve System said, “The labor market has come into better balance.”
“We could describe the job market right now as reasonably normal, and it really does meet the needs of employers and workers at the same time. And that is a condition that we haven't seen for quite some time,” Hamrick said.
Data shows job openings increased in accommodation and food services and in state and local government (excluding education) and decreased in durable goods manufacturing and in federal government.
At Nashville Record Pressing, business is booming. To help keep up with the new record demand they’re looking to hire dozens of people.
According to the U.S. Chamber of Commerce, a number of variables are contributing to the worker deficit. They include early retirement, a drop in migration, a lack of childcare and costs, along with younger generations tapping into new sources of income on social media.
As some look to jump back into the work market wages are on the rise as inflation comes down.
“One of the positive things about the current condition of the job market is that wages are growing at a rate that is above the recent level of inflation,” Hamrick said.
