US job openings hit record high as employers scramble to find workers

Americans are reentering workforce, but are much more discerning about jobs to which they apply

(Getty Images)

There were a record 10.1 million job openings posted by US employers in June as the economy continues to bounce back from the Covid-19 pandemic lockdowns that brought it screeching to a halt in 2020.

US Labor Department data show the number of vacancies grew from 9.5 million in May as companies continue to scramble to find workers in the face of continuing health fears about the coronavirus, childcare difficulties, and expanded government aid to the unemployed, all factors believed to be keeping people out of the workforce.

Workers also continue to leave jobs in record numbers as part of the so-called “great resignation” with 3.9 million quitting in June in search of better opportunities. The record for resignations was set in April when 4 million people resigned.

A further 1.3 million people were laid off or fired in June, according to the monthly Job Openings and Labor Turnover Survey.

Hiring is growing faster than the number of new job openings at 12 per cent over six per cent, which may indicate that more people are reentering the job market.

More than 943,000 jobs were created last month bringing the unemployment rate down to 5.4 per cent from 5.9 per cent.

This coincides with data showing that while the federal minimum wage remains at $7.25 an hour – as it has since 2009 – more and more companies are now offering a baseline of $15 per hour.

For the first time ever the average pay of restaurant and supermarket workers has topped $15 an hour, and now almost 80 per cent of workers earn at least that amount up from 60 percent in 2014.

The $15 level is significant because for years workers campaigned to make at least that much. Post-pandemic it has effectively become the baseline for pay, with jobhunters not even considering posts that advertise less.

Beyond financial compensation, job seekers are also paying much closer attention to benefits, schedule flexibility, and working environment.

Despite the increasingly upbeat economic news, the Delta variant of Covid-19 is casting a shadow over the otherwise rosy picture.

New daily cases are now reaching an average of 100,000 per day across the US, having been as low as 12,000 per day as recently as June.