Labor Shortage in US as Job Vacancies Touch A Record Of 10 Million
Further Job Opportunities Would Be Available to The General Population as Several States Are Phasing Out from Emergency Benefits to Citizens
The job openings in the United States have recently hit a record number in the month of June amid the ongoing reports as the entire country was facing a massive shortage in labor after the reduction in the transmission of the coronavirus infection. The US job vacancies have further jumped from previously being at 590,000 to a new record hit of 10.1 million in the last week of the month of July, according to the data from the United States Labor Department.
New Job opportunities
This new figure is further up from the record previously made in the month of May when there had been 9.5 million new job openings for the general population, and the figure had been well above the expected amount by the economists of the country.
The new 10.1 million US job vacancies have come up as numerous firms are struggling to find staff workers in multiple sectors, such as hospitality and leisure, as the economic condition of the United States is gradually stabilizing and businesses are reopening after being closed down for the past year due to the coronavirus pandemic.
Peter McCrory, a JPMorgan analyst, said that the ratio of US job vacancies to hire individuals, despite easing down in the month of June, has remained at a raised level.
The unemployment in the United States has surged to about 14.8% during the first wave of the COVID-19 pandemic, but gradually as the situation of the entire country is starting to settle and return back to normal, the economic conditions are also strongly recovering in this year as the US job vacancies are increasing.
However, despite the easing of COVID-10 restrictive measures across the country, employees have not yet rushed back to their previous jobs in the number which had been previously expected. This deficit has been accused of the lack of affordability of childcare services, generous benefits of unemployment, the retirements caused by the pandemic, and changes in careers.
It is believed by some that the current advertisement in the US job vacancies contains too many job opportunities for low-skilled individuals and not enough number of suitable candidates. The figures of the official unemployment in the month of July have suggested that the United States is gradually turning a corner, as the openings of jobs had risen by 943,000 across the country. The rate of unemployment had also fallen down 0.5%, points to 5.4% overall.
Although these figures of US job vacancies are mainly from before the rise in the number of cases related to the Delta variant of the COVID-19 infection in the United States, which has caused a steep rise in the number of active confirmed cases of viral infection along with fears that new preventive restrictions might be imposed throughout the region if the rate of transmission of infection continues to rise.
It has already been allowed in New York City that all customers along with staff members of the restaurants, gyms, and other businesses that are conducted indoors are required to be fully vaccinated against the COVID-19 infection before they are allowed inside. The auto show, which is scheduled to be conducted in New York from August 20 to 29 has also been canceled due to the rising fears regarding the surging rate of infection transmission.
Recovery of the labor market
The data figures from the US Department of Labor have shown that the hiring of new staff members across the United States has risen to 6.7 million in the month of June this year from being at 6 million in the month of May due to increased US job vacancies, which is the second-largest rise since the government of United States has started tracking job vacancies data in the year 2000.
The largest amount of increase in the US job vacancies in the month of June was usually in businesses and professional services, food services, accommodation, and retail businesses. However, it has also shown that the number of individuals that had been voluntarily leaving and becoming unemployed in June had also seen a rise to 3.9 million from previously being at 3.6 million in the previous month of May, which is well above the levels of before the start of the COVID-19 pandemic.
It is believed by some economists that the hiring of new staff members and more US job vacancies are likely to increase as educational institutes are to begin re-opening in the next month, and more states across the country are gradually phasing out of the emergency benefits for unemployed individuals.