The U.S. Department of Labor said Tuesday (May 11) that job openings soared to a record high of 8.1 million in March as the economy entered a strong recovery expansion phase and hiring demand soared, the first time ever that the U.S. exceeded 8 million. 7.5 million jobs were also open in February.
According to the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS), U.S. job openings rose nearly 8 percent in March to 8.1 million, the highest number since December 2000. But overall hiring for the month rose less than 4 percent, by just 770,000 to 6 million. More than a quarter of job openings were left unfilled. The gap between job openings and hired data has widened dramatically over the past four months.
The number of separations (layoffs, firings, retirements) fell by 107,000 to 5.3 million in March. This is the lowest level in six months.
But the resignation rate in the private sector rose 1 percentage point to 2.7 percent, a 20-year high. The report noted that the increase in the number of resignations indicates that they have more options to find better jobs. At the same time, some companies are raising pay and benefits to attract job seekers, and more are expected to follow suit after that.
The Labor Department says the number of job openings is now well above pre-outbreak levels, exceeding the all-time peak set in November 2018, 7.57 million. U.S. job openings had fallen to the lowest level, 4.6 million, last year, at the beginning of the outbreak.
In Congress, many Republicans see federal unemployment assistance handing out an additional $300 a week in benefits after states hand out an average of $320 in subsidies as a disincentive for unemployed workers to find work. Several states have already said they will cut off federal benefits to the unemployed, with Georgia being the latest to consider adopting the policy.
In a White House speech Monday (May 10), Biden disputed criticism that his granting of additional federal unemployment benefits is causing “Americans to not want to work” and urged the Labor Department to work with states to require recipients of assistance to seek work and accept employment at the time of hiring. Failure to do so will result in ineligibility for unemployment benefits. The benefit does not expire until September.
Biden said, “Anyone receiving unemployment benefits who is offered a suitable job must take that job or lose their unemployment benefits.”
According to a statement released by the White House, “Workers cannot refuse to work and continue to receive benefits because of general, non-specific concerns about COVID-19.” But they can refuse to work and continue to receive unemployment benefits if there is a child at home who cannot attend school because of the virus, or if the employer does not comply with federal or state health standards, among other reasons.
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