United States’ job openings increased further in July. Nevertheless, more workers quit jobs in retail. Moreover, business and professional services industries lost the workers. It is because of fear of exposure to COVID-19 and problems with childcare.
On Wednesday, the Labor Department reported a surge in vacancies in its monthly JOLTS (Job Openings and Labor Turnover Survey). Nevertheless, the number of unemployed people competing for a new job remained relatively high in July.
Chris Rupkey works at MUFG in New York. He is a chief economist there. Chupkey said that the labor market recovery would be measured in years and not in months.
A measure of labor demand, job openings jumped 617,000 to 6.6 million on the last day of July. Nevertheless, vacancies are remaining below their level of seven million in February.
With 172,000 new vacancies, job openings were led by the retail sector. There were an additional 146,000 jobs in social assistance and healthcare. Furthermore, job openings increased by 90,000 in the construction industry. The job openings raised to 4.5% from 4.2% in June. It is the highest indicator since October 2019.
The data moved United States financial markets a little.
The number of people voluntarily quitting their jobs raised by 344,000 to 2.9 million. In the retail sector, 152,000 workers quit their jobs. In the business services and professional industry, 98,000 workers left. Local and state government education showed that 35,000 workers resigned in July.
Schools are open for the new academic year. Nevertheless, they may have to conduct virtual classes. Because of the problems to secure childcare some workers (mostly women) resigned from their jobs. In April, the labor participation rate for women declined to levels last seen in the late 1980s. It has not rebounded much since.
Economists and policymakers, under normal circumstances, view the quitting rate as a measure of job market confidence. So, it increased from 1.9% in June to 2.1% in July.
Lydia Boussour works at Oxford Economics in New York. She is a senior United States economist there. Boussour said that more people quitting their jobs amid the pandemic are probably a reflection on fear of the virus. Moreover, it is a reflection on challenges related to childcare. It is because of the current weak state of the labor market.
Last Friday, there were the heels of news that the economy created 1.371 million jobs in August. It happened after adding 1.734 million in July. Approximately from the 22.2, 10.6 million jobs lost during have been recovered.
There were 2.5 people per job opening in July.
In July, the JOLTS report showed that hiring declined by 1.183 million jobs to 5.8 million. Moreover, Hiring declined by 599,000 jobs in the food and accommodation services sector. It decreased by 137,000 in the social assistance and healthcare industry.
Nevertheless, because of recruitment for the 2020 Census, federal government hiring increased by 33,000.
All in all, the hiring decreased from 5.1% to 4.1% in June.
Declining 274,000 to 1.7 million, layoffs abated in July.
That is the current situation in the United States. Let us hope that situation will get better soon. The whole world is waiting for the vaccine.
- Trading Instrument