From CNBC:
The jobs market has reached what should be some kind of inflection point: there are now more openings than there are workers. April marked the second month in a row this historic event has occurred, and the gap is growing.
According to the monthly Job Openings and Labor Turnover Survey released Tuesday, there were just shy of 6.7 million open positions in April, the most recent month for which data are available.
That represented an increase of 65,000 from March and is a record. The number of vacancies is pulling well ahead of the number the Bureau of Labor Statistics counts as unemployed.
This year is the first time the level of the unemployed exceeded the jobs available since the BLS started tracking JOLTS numbers in 2000. As of April, the total workers looking and eligible for jobs fell to 6.35 million, a decrease from 6.58 million the previous month.
The number fell further in May to 6.06 million, though there is no comparable JOLTS data for that month. Under normal circumstances, the mismatch would be creating a demand for higher wages.
However, average hourly earnings rose just 2.7 percent annualized in May, up one-tenth of a point from April. "Given these trends, the sluggish wage growth rate is even more perplexing," said Cathy Barrera, chief economist at ZipRecruiter, an online employment marketplace.
"If employers want to fill these 6.7 million job openings, they are either going to have to raise wages or find more clever and creative ways to recruit workers off the sidelines."ESPECIALLY SINCE THE MOOD OF THE COUNTRY
HAS SHIFTED AGAINST
THE GOVERNMENT-MEDIA/ACADEMIA COMPLEX'S SUPPORT OF FILLING AMERICAN JOBS
WITH ILLEGAL IMMIGRANTS
FROM THIRD WORLD NATIONS.
BUILD THE FUCKING WALL!
Basic supply and demand curve -not artificially manipulated with use of cheap third-world peasant labor - should drive up wages for American workers. About time.
ReplyDeleteAs great as this news appears, it is a strong signal that all the hundreds of billions of dollars that the government created out of thin air during the last 10 years is finally being unleashed. This is the economic analogy to the housing boom that came about by the flood of money into home mortgages. So, do not get careless. A great recession is sure to follow.
ReplyDeleteOne mitigation of the normal boom-bust cycle must be the trillion or so in dollars of off-shore profits of American companies that they kept off-shore because of the tax law. Now that the law has changed to encourage repatriation of these profits, that money has already started to come back and be put to work. So this will extend the boom of the boom-bust. But when the boom causes mal-investment (in projects that cannot pay for themselves), the boom will quickly come to an end. And everyone with short memories will be clueless and gob-smacked at how quickly business owners will snap their wallets shut.
So enjoy it while it lasts, and above all, do not get into debt, especially to buy assets that only depreciate in value (like that nice fancy SUV).
-- theBuckWheat.
When Bush II provided a bailout to keep the nation from moving from a recession to a full blown depression - I was against the bailout.
ReplyDeleteI still remember a flight to D.C. and businessmen talking about pulling out every project that had ever been rejected and resubmitting it. Hell - a nearby municipality was so awash in cash they built a fancy fence around the city dump because they couldn't figure out what to do with all of the money.
Meanwhile, my family could have really used a bailout to remodel our old home...
* We are a "no debt" family. Vehicles free and clear, and we live in our savings account. That would be our home... fully owned by us.
And “they” said it couldn’t be done!
ReplyDeleteThe BuckWheat, I don't wholly agree with you. It seems to be there was an almost commensurate (and unreported) inflation that caused the average person to pay - in part - for the QE.
ReplyDeleteI am saying, I think we paid for the QE in a long-term recession which Obama called a recovery.
Hey, maybe I am wrong. And I am not saying we paid the whole price.
But the purpose of the QE was to keep corporations going, and the people who had to pay for that were US - WE THE PEOPLE.