Employers still struggle to fill vacancies: JOLTS report

The number of workers quitting and the number of job openings both remained near record highs in January. This is a sign of demand for labor and of worker leverage. The data released by the Labor Department as part of its monthly Job Openings and Labor Turnover Survey (JOLTS) report was another sign of an economy that wobbled slightly but still remained quite sturdy when hit by the Omicron wave. 

Several industries that were rebounding from the pandemic and had been hungry for workers reported fewer job openings. Accommodation and food services experienced a drop of 288,000. Meanwhile, transportation, warehousing and utilities reported 132,000 fewer openings. However, in the manufacturing and service sectors, openings increased at large. 

More and more workers are now quitting not for a career change but for increased pay. Economist Jeffrey Roach says, "You can see people are actually staying within their industry - and it really helps the ‘lower-skilled’ worker. The current environment is likely to increase the price of labor. Some worry that "wage inflation" could set in and cut into profits. 

Source: The New York Times