US job openings jump to fresh record high of 9.3 million

[WASHINGTON] US job openings rose in April to a fresh record high, along with the number of people who voluntarily left their jobs, underscoring fervent labour demand and turnover as businesses emerge from pandemic-related restrictions and the economy strengthens.

The number of available positions climbed to 9.3 million during the month, the highest in data back to 2000, from an upwardly revised 8.3 million in March, the Labor Department's Job Openings and Labor Turnover Survey, or Jolts, showed Tuesday. The increase in vacancies was broad.

The number of people who voluntarily left their jobs increased to 4 million in April, while the quits rate rose to a series high of 2.7 per cent. The figures suggest workers are growing more confident in their ability to find other employment.

While companies are hiring as the economy reopens, child care obligations, lingering health concerns, skills mismatches and enhanced unemployment benefits have kept some Americans from returning to the labour force. The number of vacancies exceeded hires by 3.2 million in April, the biggest gap on record.

Hiring challenges have been so acute in recent months that half of all US states have announced plans to phase out federal unemployment insurance programmes early in an effort to encourage people to look for work. Meanwhile, employers have been offering bonuses, raising wages and adding benefits like health insurance to attract workers.

The latest jobs report from the Labor Department showed payrolls increased by 559,000 in May after a 278,000 gain in April, which suggests that hiring efforts started paying off last month. Still, the payrolls figure came in below estimates and leaves the labor market 7.6 million jobs short of pre-pandemic levels.

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A broader labor market recovery will require a faster pace of hiring in the leisure and hospitality industry, which was hardest-hit by pandemic lockdowns.

Accommodation and food services job openings jumped by a record 349,000 in April, accounting for 35 per cent of monthly increase. Hiring in the industry rose 232,000.

Manufacturing vacancies climbed by 102,000 to a record 851,000 in April, while hiring declined. Job openings in retail and wholesale trade, professional and business services, and government were also the highest on record.

A separate report Tuesday from the National Federation of Independent Business showed that small business optimism eased in May for the first time in four months as firms grappled with a lack of labour and higher prices. The NFIB said last week that small-business owners had a record share of unfilled positions in May.

Total hires increased to 6.1 million in April from 6 million, while the hires rate held at 4.2 per cent. Layoffs and discharges were little changed.

By industry, the pickup in the number of quits included increases in retail trade, transportation and warehousing, and leisure and hospitality.

BLOOMBERG