The U.S. Department of Labor's Job Vacancies and Labor Mobility Survey (JOLTS) released Tuesday showed that job vacancies in the UNITED States were 10.562 million in November, down sharply from October, but remained high. In November, a record 4.5 million Americans resigned, including more than a million exits from the leisure and hospitality industries alone, underscoring employers' difficulties in retaining employees.
Job vacancies in jolts in the U.S. were 10.562 million in November, falling short of expectations of 11.1 million and 11.033 million in October. The number of job openings in November recorded the largest decline since the COVID-19 pandemic, down 529,000 from October, and the last decline was in April 2020, when 1.139 million job openings were lost month-on-month. Although the number of job vacancies fell in November, it remained high. By sector, job openings in the accommodation and food services, construction, and non-durable goods manufacturing industries all declined; in the financial and insurance industries, job openings in the federal government increased.
Although job vacancies fell sharply in November, the number of job vacancies fell at a new high in November, with job vacancies falling at a new high of 3.7 million more than the number of unemployed in November. The ratio of job vacancies to unemployment fell to a record low of 0.6511, up from a record 4.6 in April in the early days of the COVID-19 outbreak.
In November, a record 4.5 million Americans voluntarily resigned, including more than a million in the leisure and hospitality industries alone, underscoring employers' difficulty retaining employees. The number of voluntary departures in various industries has generally increased, pushing the voluntary departure rate to 3%, which is also a record. By sector, voluntary resignations in the accommodation and foodservice sectors have set records, the transport and warehousing sector has the second highest number of resignations since record, and the number of resignations in healthcare has also risen significantly.
Rising self-employment rates often represent increased confidence in the workforce and people are more willing or more able to jump ship. An unprecedented number of Americans have resigned, suggesting a continued employee loss, is undermining employers' efforts to fill nearly record high job openings, some analysts said. People voluntarily resign, an incentive from record wage growth and other attractive conditions from employers in desperate need of talent, which not only makes it more difficult for employers to fill job openings, but also drives up pay levels and inflation.
Bloomberg analysis believes that the surge in infections with new variant viruses in recent weeks may affect both job openings and voluntary departures. If more Americans choose not to travel and not eat at restaurants, it will be difficult for businesses to stay open.
According to ROBERT Frick, an economist at the Naval Federal Credit Union, as quoted by CNBC, the wave of resignations shows no signs of abating, with a new record number of voluntary departures. The question is why this is the case, and there are many answers, for different reasons. Fears of COVID-19 remain, and many Americans are confident of resigning because of job openings and rising wages.
Financial blog Zerohedge commented that after a sharp rise in the past few months, the number of job vacancies in the United States has peaked. The number of voluntary departures lags behind the peak of job openings, so the emergence of large resignations may not be so surprising.
JOLTS data also showed an increase in hiring in November, up 191,000 to 6.697 million, the highest level since July last year, indicating that employers have made some progress in filling job openings. The data on layoffs and dismissals in the month was relatively stable.
Jolts data is one of U.S. Treasury Secretary Janet Yellen's most watched labor market reports, which typically lag a month behind non-farm payrolls. The U.S. Department of Labor will release its December non-farm payrolls report on Friday, and the market expects the U.S. to add 420,000 jobs in December.
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