In September, U.S. jobs continued to slowly increase and continue towards setting new records. This is a great sign that the slow economy has had little to no effect on the job market. The Month of September had more than 5 million jobs that needed to be filled. An employer survey by the government showed that this was a slight increase from the job vacancies in August.
This spring, there was a new record for job openings in the U.S., with a total of 5.9 million jobs available. At the same time, there were approximately 3 million people that quit their jobs. What is called the “quit rate”, is a percentage for the amount of people that quit their old jobs. The rate remained the same at 2.1%. Since the beginning of 2016, this has been considered a normal rate for individuals that quit their jobs. Prior to 2016, the quit rate hadn’t been normal for 8 years.
When it comes to new jobs being created in the U.S., there has been 181,000 jobs created every month for 2016. It is predicted that more than 2 million jobs will be created, before the year is done; making it six years in a row that jobs have increased by approximately 2 million. With a stronger labor market, there has been a demand in higher wages. At the same time, the unemployment rate is below 5%.
In the past year, there has been a 2.8% increase in hourly pay. This is the largest increase in a 12-month time frame, since the 2009 recession. Most companies claim that a lack of qualified candidates is one reason for the open vacancies. The hiring rate did drop, but it was a minor 0.1% difference. This means that a change in hiring isn’t the reason for the surge in job openings.