Job openings near record as labor market emerges from Omicron disruptions

The Labor Department said Wednesday there were 11.3 million jobs in January, down slightly from last month’s revised 11.4 million—a new high. At the start of the year, the number of employees leaving their jobs fell slightly to 4.3 million, while hiring stood at 6.5 million.

Separate data from the private sector showed employers had more than 10.8 million openings at the end of February, a slight increase from the previous month’s estimate, according to job search site ZipRecruiter. Indeed, another job-search site estimated that there were 10.7 million job opportunities in mid-February. The Labor Department figures are nearly a month behind the private sector figures.

The Labor Department said that last year, workers left their jobs at the highest rate on record since 2000. Economists say this suggests Americans were more willing to leave employment in search of better pay or more desirable perks, including remote work.

Job openings for the entire second half of last year also rose to a record last year, according to the Labor Department’s revision of data for 2021. There was growing demand for labor across the board, and a greater focus in consumer-facing industries such as tourism, which are still seeing elevated job opening totals as the pandemic continues.

“Job opportunities are still very strong and we are seeing a slight flattening, but they are plateauing from great heights,” said Julia Pollack, chief economist at ZipRecruiter.

Compared to February 2020 levels, job openings in construction, leisure and hospitality, education and health services grew the fastest, according to an analysis by Indeed.

Other indicators showed that the US economy’s recovery in recent months has been at a solid level, despite temporary disruptions caused by the Omicron version. Employers added more than a million jobs in the first two months of this year, consumer spending grew at a faster pace in January, and the unemployment rate is approaching its pre-pandemic levels.

Amherst chief economist Stephen Stanley said that while job openings in January remained close to a record, an increase in layoffs as well as the remainder of hiring showed “a modest reduction in labor market activity due to the Omicron boom.” Indicates stagnation.” Pierpont Securities in a Note.

According to the Labor Department, layoffs reached 1.4 million in January, up from 1.3 million a month earlier.

With the easing of the pandemic, some firms are recalling employees to the office or other in-person settings. Some employees may be considering leaving their jobs.

Chief Executive Officer Camille Fetter said that Talentfoot, a Chicago-based executive search firm, received a high volume of calls after some large companies announced plans to require employees to report into offices.

Workers “don’t want to be told that they need to be physically somewhere at a specific time,” she said. “That’s when they’re picking up the phone and calling us.”

Competing for workers with businesses that offer remote work is a challenge, especially for those that cannot provide that option.

Arden Gardens, an Atlanta-based chain of cold-pressed juice shops, has found it difficult to recruit and hire employees, owner Leslie Zinn said, with some potential hires preferring to work remotely.

“Retail is one of the most challenging places to retain workers,” Ms Zinn said, noting health concerns about a mask mandated in Atlanta until last month. “It’s different if you’re working from home and you can do whatever you want with it. We’re an individual business.”

Economists expect job losses to remain high due to a tight labor market, which is giving many workers the confidence to switch jobs.

“We expect the quit rate to remain at this high because, in a tight labor market, workers are confident they can find a new job in whatever specialties they desire,” said Luke Purdue. Luke Purdue said. An economist at Gusto, a payroll and human resource services platform.