Job Openings Increased to 11 Million in December
The U.S. Bureau of Labor Statistics (BLS) recently released its December Job Openings and Labor Turnover Summary. This month’s report revealed the number of job openings increased from around 10.5 million in November to 11 million in December, resulting in 1.9 job openings for every unemployed worker. The job opening rate also increased from 6.4% to 6.7%.
The number of job openings is viewed as an indication of the strength of the labor market and the broader economy. Economists had expected job openings to drop slightly in December; however, openings remained historically high, outnumbering unemployed workers by about 5.3 million. The largest increases in job openings were in accommodation and food services, retail trade and construction.
In addition to the continued high number of job openings, the total employee quits changed little from 4.2 million in November to 4.1 million in December. The number of employee quits in December is below the record 4.5 million recorded in November 2021. Despite the slight decrease in total employee quits, December’s rate of employee quits was unchanged at 2.7%. Notably, other services saw a slight increase in employee quits while transportation, warehousing and utilities decreased somewhat. Because employee quits are generally voluntary separations initiated by the employee, the quit rate can serve as a measure of workers’ willingness to or ability to leave jobs.
Other key takeaways from December’s report include the following:
The number and rates of hires increased slightly from November’s 6.1 million and 3.9%, respectively, to 6.2 million and 4.0% in December.
The number and rates of discharges changed very little from November’s 1.4 million and 0.9%, respectively, to 1.5 million and 1.0% in December.
The federal government saw increases in layoffs while total layoffs remained relatively low.
Employer Takeaways
December’s high number of job openings and employee quits suggests the labor market remains resilient despite the current economic uncertainty. This is an indication that the Federal Reserve’s strategy to cool the labor market and ease pressure on wages may not be taking hold. A drop in the number of job openings and a larger decrease in employee quits would be seen as a softening in the labor market.
Despite December’s slight decrease in the number of total employee quits, the number remains elevated. This suggests that workers continue to feel confident to switch jobs despite inflation and the current economic uncertainty. As a result, employers continue to struggle to attract and retain workers, resulting in increased labor costs for employers as they raise wages and offer competitive benefits to attract talent. As such, employers should continue to monitor employment trends to stay competitive in today’s evolving market.
Contact us for more resources.
The content of this News Brief is of general interest and is not intended to apply to specific circumstances. It should not be regarded as legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. © 2023 Zywave, Inc. All rights reserved.