There are more job openings in some parts of the United States than people to fill them, according to a report from Reuters Tuesday.
The Associated Press reported that job openings across the country fell 3.4 percent in November to a seasonally adjusted 6.9 million. The number of positions is still “healthy,” and hiring reached a 10-month record high in December.
That job growth increase in December should mean fewer unemployed workers. However, economists haven’t seen a corresponding change, Reuters said. Nor have they seen an increase in wages, which would be a sign that business owners are responding to the labor shortage by trying to make employment more appealing. Average hourly earnings rose 3.2 percent in December, an unexciting number compared to historical norms.
In manufacturing in particular, 32,000 jobs were added in December, according to the Labor Department. Most of these were in the durable goods sector (19,000), particularly fabricated metal products (7,000) and computer and electronic products (4,000). In total, manufacturing employment increased by 284,000 individuals in 2018.
In 2017, the sector added 207,000 jobs.
At Rockwell Automation’s Automation Fair in November, supply chain professionals pointed to a labor shortage. Several companies talked about fostering STEM programs at the middle school and high school level to encourage students to pursue blue collar work.
The fact that job openings outnumber unemployed people could potentially encourage the Federal Reserve to raise interest rates, Reuters said.
