Department of Labor information was recently released to the public showing that the number of job openings continues to climb, with a record 10.9 million on the last business day in July.
The previous record, seen just the month previous in June was at 10.2 million job openings. The gross imbalance in the labor market continues to worsen as employers seek to reopen businesses and potential workers continue to live on unemployment checks from the government.
Total rates of hires and separations remained steady at respective values of 6.7 million and 5.8 million. Quit rates also held at 2.7% with discharges / layoffs maintaining 1%.
July saw the continued balooning of imbalance between the labor force and the number of open jobs. Department of Labor reported that the ratio climbed to 6.9% last month, compared with 6.5% in June and 4.6% for the same time last year.
Employment opportunity is contrasted sharply with current employment levels, which remain far below target according to economists’ predictions. The shortfall is worth about 500,000 jobs.
Economists predicted that August would see an increase of 720,000 jobs, but in realty, the figure only increased by 235,000. Phil Mattingly, a CNN White House correspondent said that the situation represents “a big, big miss.”
Unemployment currently sits at 5.2%, the worst rate seen since Biden took office in January of this year. The worst hit is still in the hospitality sector, where target levels of employment are most starkly off and well below their pre-pandemic values.
Republican lawmakers identify the federally enhanced unemployment benefits as the culprit for the slow recovery, since Democrats extended the increased payments until just last Monday. The federal checks were worth $300 per week, a substantial amount of cash that made unemployment more lucrative than working many lower-compensated jobs. About 7 million Americans were affected by the end of the COVID-relief money, and now will only receive the normal unemployment benefit rate.
Recovery may improve now that the unemployment benefits have run dry, but Ben Shapiro from the Daily Wire sees another roadblock on the path to economic recovery. Shapiro argues that the “worried… vaccinated” are giving in to “fear-mongering from public officials.” Such behavior is “tanking the economy,” he warns.
Shapiro also pointed out that the states with the greatest economic recovery are all Republican, while the state which suffer the worst economic recovery are all Democrat.
Author: Karen Reid