Labor Insanity: There Are Now A Record 4.6 Million More Job Openings Than Unemployed Workers
After several months of speculation that the US labor market had finally reached its absolute peak with the number of job openings drifint around 10-11 million, today the BLS restarted the debate whether we have seen the worst of the labor shortage when it reported that one month after what last month was the biggest drop since the start of the pandemic (since revised to a more modest number), in December the number of job openings once again jumped, rising by 150K to a near record 10.925 million, smashing expectations of a decline to 10.3 million and just below the July all time high of 11.1 million.
Looking at the details, job openings increased in several industries with largest increases in accommodation and food services (+133,000), information (+40,000), and nondurable goods manufacturing and state and local government education (+31,000 each). Job openings decreased in finance and insurance (-89,000) and in wholesale trade (-48,000).
What we find far more remarkable, however, is that amid the continued tightening in the labor market, the bump in job openings meant that there was a new record, or 4.6 million, more vacant jobs than unemployed workers in December, confirming that the US labor market remains woefully, perhaps irreparably cracked.– READ MORE
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