The Labor Department released the numbers on Tuesday, June 9th, in the Job Openings and Labor Turnover survey, saying that the number of job advertised in April is higher by 5.2 percent This is a sign of a healthy economy, with businesses thriving and employers feeling confident that customers are going to be willing to pay for their services more in the following moths.
Even if at the beginning of the year it seemed that the economy was fluctuating and customers were hesitant and cautious regarding spending, now with the minimum wages going up, things are changing for the better.
At the end of last week, the government announced that, in May, the number of jobs was also high, with 280,000 positions added.
Specialists are confident that this is not just a phase. “Labor market conditions are strengthening and wage growth will accelerate further,” said Paul Ashworth, who is a chief economist for Capital Economics.
Even with the high number of jobs added on the market, the unemployment rate went up to 5.5 percent, which is 0.1 percent higher than the previous month. However, economists say that this is not at all worrying because the hike in wage gains and the increasing number of jobs available will prompt more people who are unemployed to start looking for work.
Surprisingly enough, the surveys also showed that the higher number of positions on the job market does not necessarily mean that the exact same number of posts are filled in. In fact, it was revealed that employers hired 5 million people, which is less than 5.1 million registered in previous months.
A reason for this is that companies’ demands are harsher and they are finding it increasingly difficult to find the right well-qualified workers. Another explanation might be that employers are not offering good enough payment for better qualified employees.
In spite of this, specialists say that employment is going in the right direction because the higher numbers do not refer to the present but to future hiring: It says companies are getting more optimistic. It doesn’t mean that they are hiring today, it means they anticipate hiring in the future,” said Tim Hopper, a chief economist at TIAA-CREF.
Because more businesses – large or small – have recorded profit last year, their confidence and optimism is on increase mode, which will inevitably prompt them to hire more people.
Moreover, the survey showed more people are quitting their jobs now, which means they are aiming for higher wages and better jobs. Therefore, it is estimated that companies will soon have to come up with something good to offer their future employees if they want well-qualified people to fill the positions advertised.
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