The U.S. saw 11 million new job postings and just 7.4 million people counted as unemployed in October, according to the Labor Department’s Job Openings and Labor Turnover survey, or JOLTS.
The October job postings nearly reached July’s record, but the number of unemployed Americans who could potentially fill those positions was far lower.
Meanwhile, wages for some Americans, particularly lower-paid workers, have been growing at healthy rates. In the most recent quarter that ended in September, pay increased by 1.5 percent, a boost from the 0.9 percent rise in the previous quarter, according to the Labor Department. But the increases in inflations may be offsetting some of the pay gains.
The findings from the JOLTS survey reflect a job market in which the unemployed can be choosier than ever as companies in desperate need of help offer better pay and benefits to lure workers. Gusto, a company that provides pay and benefits software to small businesses, said that 14 percent of all checks distributed on its platform now also include bonuses, an increase from the 11 percent in the previous year.
Meanwhile, the average size of bonuses tripled in the same time period to approximately $1,670, from $550, according to Gusto. People who switch jobs are also receiving bigger pay hikes than those who opt to stay, according to data from the Federal Reserve Bank of Atlanta.
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The government report Wednesday also showed that the number of people quitting their jobs dropped slightly in October to 4.2 million, from 4.4 million in September, though that is still the third-highest number of monthly resignations on records dating to 2000.
Last week, the government reported that the unemployment rate fell sharply in November, to 4.2 percent from 4.6 percent, as more than 1 million people said they found jobs. But it also said that only 210,000 jobs were created, the fewest in nearly a year and less than half the previous month’s gain, leaving a more convoluted picture. The jobs figure is based on a separate survey than the one used to compile the unemployment rate.
The JOLTS report Wednesday reflects October data, when new COVID-19 infections were still falling and before the emergence of the Omicron variant, which could dampen the economy in the coming months.
Larger paychecks are luring many employees to leave their jobs for new work, pushing up the number of quits. A high number of resignations is a sign of a strong labor market because it shows that people are confident they can find a new job. The vast majority of people who quit do so to take new jobs.
Job openings rose about 4 percent in October to 11 million, just below July’s peak of 11.1 million. The biggest increase was in restaurants, bars and hotels, where they leapt nearly 20 percent to 1.6 million. Restaurant traffic and travel increased that month as coronavirus cases waned.
Other job openings data reflect how the economy is evolving in a pandemic. According to job-listings website Indeed, the number of available positions for loading and stocking jobs, primarily in warehouses, has more than doubled from its pre-pandemic level, evidence of the rapid rise in ecommerce.
And with demand surging for factory goods such as furniture, cars, and appliances, manufacturers are desperately seeking more employees, even as many struggle to obtain supplies amid supply chain bottlenecks. The number of available factory jobs jumped 6 percent in October, to just over 1 million, more than double the pre-pandemic level and the highest on record.
The Associated Press contributed to this report.
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