Record number of open jobs posted

A store in Salem, N.H., is among many companies nationwide seeking to hire as U.S. job openings continue to rise, the Labor Department said Tuesday.
A store in Salem, N.H., is among many companies nationwide seeking to hire as U.S. job openings continue to rise, the Labor Department said Tuesday.

WASHINGTON -- U.S. employers posted the most jobs in two decades in August, and hiring also reached a record high, fresh evidence that companies are desperate to staff up in a growing economy.

Job openings rose 0.8 percent to 7.14 million, the highest on records dating back to December 2000, the Labor Department said Tuesday. That is also far more than the 6.2 million people who were unemployed that month.

The number of available jobs has swamped the number of unemployed for five-straight months. Hiring has been solid, which has pushed down the unemployment rate to a nearly five-decade low of 3.7 percent. Strong demand for workers when so few are out of work may force more companies to raise pay in the coming months.

President Donald Trump celebrated the report on Twitter, tweeting: "Incredible number just out... Astonishing! It's all working!" Trump added that the stock market was "up big" and referred to "Strong Profits."

Yet so far, pay raises have been modest. Average hourly earnings rose 2.8 percent in September compared with a year earlier. That's much higher than several years ago, but below the roughly 4 percent gain that is typical when unemployment is so low.

It's a sharp turnaround from the recession and its aftermath. In 2009, there were as many as six unemployed workers for each available job. Now, that number has fallen below one.

Employers hired roughly 5.8 million people in August, the report showed. That is also the most on record, but that increase partly reflects population growth. The percentage of the workforce that found jobs in August ticked up to 3.9 percent from 3.8 percent in July. That matched an 11-year high first reached in May.

Job openings rose in August in professional and business services, which include mostly higher-paying positions in engineering, accounting and architecture, as well as temporary help. Postings in that category have jumped 27 percent from a year ago.

Construction companies are also desperate for workers, posting 298,000 open jobs. That's nearly 39 percent more than a year ago.

Job openings also increased in finance and insurance and health care.

Openings fell in August from the previous month in state and local government, manufacturing, retail, trade, transportation and utilities, and slipped slightly in hotels and restaurants.

In the 12 months through August, the economy created a net 2.3 million jobs, representing 67 million hires and 64.7 million separations.

Information for this article was contributed by Katia Dmitrieva of Bloomberg News.

Business on 10/17/2018

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