The key takeaway from the May Jobs Report and the April Job Opening and Turnover survey is that little has changed. There are still roughly two job openings for every unemployed person. While some industries have indicated that they will slow down their hiring, others are still desperate for new staff.
April's Job Opening and Turnover Survey
The number of job openings pulled back slightly from March's record high, at 11.4 million. Compared to the unemployment rate of 6 million, there are 1.9 jobs available for each unemployed person.
Transportation, Warehousing and Utilities (+97,000), Non-durable Goods Manufacturing (+67,000), and Durable Goods Manufacturing (+53,000) had the largest increases in job openings. At the same time, Healthcare and Social Assistance (-266,000), Retail Trade (-162,000), and Accommodation and Food Services (-133,000) declined in the number of open positions.
The quit rate dropped ever so slightly from 4.5 million in March to 4.4 million in April. This indicates that employees are still taking advantage of the worker shortage to seek new positions with greater benefits.
May Jobs Report
May's report again showed better than expected gains, adding 390,000 to the non-farm payrolls. While this number does show a slowdown in hiring, it was at the rate expected due to recession fears. The unemployment rate was little changed at 6 million/ 3.6%.
There were few changes in the labor force participation rate (62.3%) and the employment to population ratio (60.1%). Long-term unemployment dropped to 1.4 million. May also showed that the pandemic is loosening its impact, as the number of people prevented from looking for work due to Covid dropped to 455,000 from 586,000 in April.
May also showed a continued decrease in the number of people who work from home, dropping to 7.4%. Hourly wages rose again by $0.10.
Conclusion
While some industries are slowing their hiring and even shedding positions, the demand for workers remains high for many. With more job openings than unemployed people, the balance of power in the job marketplace will stay in the hands of the job seekers for the foreseeable future.
For companies in high-demand industries, this means re-evaluating their recruitment marketing. There are many options; to win the top talent, you must show them why you are the best option. Companies must actively showcase the immense benefits your company offers over competitors.
If you need assistance with your recruitment marketing, Lionzone is here to help. Contact us today for your free consultation https://lionzone.com/recruitment-marketing or 615-235-3200.
Resources:
https://www.bls.gov/news.release/empsit.nr0.htm
