US Employers Step Up Job Search Despite Omicron, Yet Struggle to Fill Open Positions

Strategic Insights -

The Labor Department reported that the number of posted jobs rose 1.4% to 10.9 million on December 31, marking a significant increase from pre-pandemic levels but falling short of the record 11.1 million reached in July. The data suggests that companies were eager to hire workers last month but struggled to find enough people to fill their open jobs, leading to a measure of hiring that actually fell in December.

Key Takeaways:

  • The number of posted jobs rose 1.4% to 10.9 million on December 31, marking a significant increase from pre-pandemic levels.
  • The data suggests that companies were eager to hire workers in December but struggled to find enough people to fill their open jobs.
  • A measure of hiring actually fell in December, indicating that companies had trouble filling their open positions.
  • Approximately 1.6 available jobs existed for every person actively seeking work in December, highlighting the labor shortage.
  • Fewer people likely sought work in January due to fear of the virus, executives at some staffing agencies said.
  • Economists are projecting that businesses and other employers added just 165,000 jobs in January, according to data provider FactSet.
  • Some economists expect that the economy shed jobs in January because so many Americans were likely forced to stay home due to illness.
  • Hiring is likely to bounce back in February as omicron fades and Americans resume traveling and eating out.
  • About 4.3 million people quit their jobs in December, a decrease from the record 4.5 million in November.
  • A significant number of Americans are leaving their jobs, mostly for better-paying positions, which is a positive sign for the labor market.

Statistics:

  • 10.9 million: The number of posted jobs in December, up 1.4% from the previous month.
  • 10.4 million (pre-pandemic): The number of posted jobs before the pandemic, compared to the current level.
  • 11.1 million (July 2021): The record number of posted jobs in the United States.
  • 1.6: The number of available jobs for every person actively seeking work in December.
  • 165,000: The projected number of jobs added in January, according to data provider FactSet.
  • 4.5 million (November 2021): The record number of people who quit their jobs.
  • 4.3 million: The number of people who quit their jobs in December.

Sources:

  • The Labor Department, for the report on December job postings.
  • Data provider FactSet, for the projected January job gains.