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The numbers: U.S. job openings climbed to a record 11.5 in March — and the number of people quitting also hit an all-time high — in another sign of a historically tight labor market that’s a boon for workers and a headache for businesses.
The number of people who quit jobs in March, meanwhile, rose to 4.5 million, the Labor Department said Tuesday.
Quits topped 4 million last summer for the first time ever. And it’s now happened 10 months in a row, part of a pandemic-era trend that’s become known as “The Great Resignation.”
Before the pandemic, the number of people quitting jobs averaged fewer than 3 million a month.
Most who quit are finding new jobs, however.
There’s almost two open jobs for every unemployed person, though companies never try to fill all of them. The number of openings is largely viewed as a way to assess the strength of the labor market.
Big picture: The tightest labor market in decades is a double-edged sword.
It’s great for workers who are switching jobs for better pay and conditions. Yet companies are struggling to fill open jobs and hold on to employees, preventing them from producing enough goods and services to keep up with demand.
Both the lack of labor and the shortage of goods and services are also contributing to the highest U.S. inflation in 40 years.
The big question is, how long can the golden age for labor last? The Federal Reserve is moving to raise U.S. interest rates to try to bring down inflation, but some former officials don’t think the central can succeed without triggering a recession.
Key details: Job openings rose the most at retail stores (155,000) and manufacturers (50,000). The highest number of openings were in the South.
Openings fell in transportation, warehousing, public education and the federal government.
The so-called quits rate edged up to 3% from 2.9% and matched a record high set in the final two months of 2021. More people quit when the economy is doing well or they think they can find a better a job.
Looking ahead: “Workers are still very much in demand. Despite concerns about an imminent recession, employers are still looking to hire at near historic rates and are desperately holding on to the workers they have,” said Indeed Hiring Lab director Nick Bunker.
“The labor market is still very much a job seeker’s market,” he added. “Something dramatic will have to happen for this to change anytime soon.”
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
rose in Tuesday trades.
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