Job Openings Reach All Time High During August

In August, job openings reached an all-time high indicating that business could be facing more inflationary pressures moving forward with a labor market that remains very tight.

Job vacancies hit 7.14 million during the month, according to the survey Job Openings and Labor Turnover, a report that officials at the Federal Reserve watch closely to receive clues over where employment currently stands.

The full number of hires reached a record 5.78 million. Openings dwarfed the full level of workers search for jobs, which was at 6.23 million for August and fell in September to 5.96 million, show recent stats released by the Labor Department.

The survey, known as JOLTS, lags the nonfarm payroll total the government releases by one month. The survey was first released during December of 2000.

Economists have watched JOLTS very closely as a way of determining when worker wages could start to catch up with employment acceleration and the quick decline in overall unemployment.

The headline rate of joblessness for September reached 3.7% its lowest rate in 49 years.

Workers have continued showing confidence in the country’s jobs market which is evidenced by the quits rates that has moved slightly lower from July and is now 3.58 million. That rate, which counts workers who voluntarily left, has jumped an incredible 12.7% from August of last year.

The fact record numbers of U.S. workers are voluntarily leaving their jobs suggests they are finding new opportunities that are substantially better elsewhere, said one labor economist who works online at ZipRecruiter a marketplace for employment.

Wages have moved higher over the last year, but have not been able to break out of the range since the end of the recession. Average earnings per hour increased in August by 2.9% and in September by 2.8%.

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