The United States Statistics Office recorded 11.2 million vacancies on the last day of July compared to 5.7 million unemployed people in the North American country. Figures that translate into an excess of labor supply that, in addition, has made the business market increase wages to make jobs more attractive.
Despite the weakening economy, employers in the United States are still urgently looking for workers. In July, there were, on average, nearly two jobs for every unemployed American (there are nearly 6 million unemployed), according to a survey of vacancies and job turnover by the US Department of Labor.
The figures are also added to the 4.2 million people who quit their jobs the previous month and that has generated pressure on the business sector, who constantly compete to increase salaries and attract the attention of the small group that is willing to work.
Retail trade saw the largest increase in vacancies, in sectors such as transportation, warehousing and utilities. Arts, entertainment and recreation also saw an increase in available jobs from the previous month.
Given the recent inflationary panorama, President Joe Biden has been promoting a series of bills that his Democratic caucus has defended and approved in Congress.
Some of them, such as ‘The Bipartisan Infrastructure Law’, have served the president as a flag to attract the unemployed, but will so many job offers help lower inflation rates or, on the contrary, will they increase them?
Thanks to the Inflation Reduction Act and the Bipartisan Infrastructure Law, we’re creating thousands of good-paying jobs right here in America.
But don’t take my word for it: take Corning and First Solar’s, who both announced new factories today.
It’s our plan in action. pic.twitter.com/T6xnvAxrSu
— President Biden (@POTUS) August 30, 2022
Imbalance between labor supply and demand
The news of the increase in available vacancies seems to go against what the Federal Reserve expected for the US economy, since with its recent increases in interest rates and cuts in loans, what the US Central Bank was looking for was to cool down the economy. and not make more money flow available to people.
The results of the labor survey did not go down too well with investors either. The Wall Street stock market closed this Tuesday, August 30, in negative territory for the third consecutive session as one more excuse for market agents to fear a possible recession.
The truth is that after the economy began to recover from the pandemic recession more than two years ago, demand quickly recovered and employers were encouraged to hire workers at speed to respond to market requests.
However, economic experts and marketing analysts who analyze the behavior of people, assure that the workforce that employers found after the pandemic was not the same as in 2019. People changed their habits, teleworking affected the corporate workflows and the personal goals of Americans also began to change.
The economic sector also expects the unemployment rate to remain at 3.5%, equaling a 50-year low, and the average hourly earnings of the labor sector are also expected to see another advance to offset the negative outlook in the United States.
With AP and Reuters.