Mon, May 28, 2012, 1:53 PM EDT - U.S. Markets closed for Memorial Day

Job openings jump to near a 3-year high

US job openings jump in December to nearly match 3-year high; hiring, quits decline

WASHINGTON (AP) -- The number of available jobs in the United States jumped in December to near a three-year high, supporting other data that show a brighter outlook for hiring.

Companies and governments posted 3.38 million jobs in December, the Labor Department said Tuesday. That's up from the 3.12 million advertised in the previous month and nearly matches the three-year high reached in September.

Job openings in the private sector reached the highest point in almost three and a half years.

Still, overall hiring slipped, and the number of people who quit their jobs also declined. That suggests the job market still isn't as dynamic as it was before the recession.

Manufacturers, retailers and professional and business services all posted gains. Professional and business services include temporary jobs. But they also include high-paying positions, such as architects, engineers and accountants.

The report on job openings follows Friday's optimistic employment figures. Those showed employers added 243,000 net jobs in January, and the unemployment rate fell to 8.3 percent.

December was also a big month for hiring, but there were still 13.1 million people unemployed that month. That means an average of 3.9 people competed for each open job in December, the first time in four years that ratio was below 4 to 1.

In a healthy job market, the ratio is usually around 2 to 1.

It generally takes one to three months for employers to fill job openings. December's big jump in postings is likely one reason January's jobs report was healthy. But it also suggests job growth may continue in the coming months.

Job openings have rebounded since the recession ended in June 2009, rising 39 percent since then. But they are still far below the pre-recession levels of roughly 4.5 million.

And hiring hasn't kept up with job openings. It's risen only 11 percent since June 2009.

The slow recovery in hiring may be one reason the job market still seems sluggish to many people, particularly those out of work, even as the unemployment rate has fallen for five months straight.

The key issue is how the monthly net job change is calculated: It's additions to company payrolls minus subtractions. That net figure normally rises as hiring strengthens. But it can also rise even if hiring is weak— as long as layoffs and quits are relatively few.

Tuesday's report shows that most of the improvement in December's net gain of 203,000 jobs stems from lower layoffs and quits, rather than a pickup in hiring.

Layoffs dropped to 1.6 million in December, below the pre-recession monthly average of about 1.9 million. Last year, layoffs fell to their lowest annual total in the 10 years that the government has tracked the data, Tuesday's report showed.

At the same time, the number of people quitting their jobs, while rising, is also far below pre-recession levels. That's not such a good thing. Workers tend to quit when they find another job, usually with better pay.

A higher number of "quits" tends to signal a strong labor market, with lots more jobs and higher pay. With pay levels stagnant, not many jobs offer better opportunities. The result: a low-turnover labor market, with few being laid off, few quitting and moderate numbers of hires.

"It's kind of like when a musical chairs game comes to a halt," said Jason Faberman, a senior economist at the Federal Reserve Bank of Chicago. "Even with decent job growth numbers, it can still feel to the average worker like a stagnant labor market."

Any net job gains are still, of course, a good sign. They mean payrolls are growing, and consumer spending can grow. So can the economy.

But the low turnover helps explain why the job market may not feel much better to many people. Especially those without a job.

 

 
  • Ed  •  Miami, Florida  •  3 months ago
    Job listings are a joke. I interviewed for a position with a for profit college recently and was rejected, Two days later the position was advertised again and is re-posted on career-builder every two weeks. Most of the positions advertised here in south Florida are phantom or work at home scams.
    • W.T.Effyall 3 months ago
      Eighty percent of all job openings are not advertised.

      The ones that are advertised tend to be the worst ones, or like you say, scams.
    • Beezey 3 months ago
      Eighty percent of all facts are made up
    • John S 3 months ago
      DO not say these are made up. It is important that EVERY American believes these numbers are real, so obama can be elected again. You will be punished next time.
  • JoeBagaDoughnuts  •  3 months ago
    What I always say to these stories.. list the names of who/where is hiring.. it would be so useful.
    • Jason 3 months ago
      starts with "Mc"....
    • John 3 months ago
      McDonalds, those places where you stand outside in an elmo costume and hold up signs, mowing lawns... list goes on!
    • elvsinus 3 months ago
      They are posted. YOu must go to Mexico to read the posting - employers address, job description, emplyer contact info, even discounts on transportation and guides for crossing the border illegally.
  • Aggie in CA  •  Santa Clara, California  •  3 months ago
    There may be some good news on the jobs front, if you believe part time work and no benefits work constitutes progress (Perhaps, it does under current corporate thought and conditions.). However, the corporations continue to claim that they have millions of job openings for engineers, etc., and they cannot find qualified Americans to fill them. I believe this is a lie, a fabrication.
    If you go online and look at job openings, you will find that there are many job listings that are never filled, not because there are no qualified applicants, but because there is no intention of immediately filling these job positions, if ever. This is not a new phenomena. Many companies want to establish a 'pool' of applicants, in case they need them, or when they are really hiring within their existing ranks.
    Do any of you remember that early in the Bush administration when we were losing jobs to overseas that Bush told the nation that we needed to retrain and to get degrees in technology, an American job stronghold? Many thousands of Americans did just that. By the time they completed their training and some started working, the corporations STILL moved overseas. This is because foreigners heard the same message and also trained, many on fast-tracked programs, with their governments' backing.
    Things will not change until American corporations think more about America than they do about their profits (not a likely scenario, and yet, they will be the first to scream for help when faced with adversity elsewhere. They will expect our troops, mostly drawn from the poor and Middle Class, to save their corporate petewies.)
  • Mogollon Dude  •  3 months ago
    What a joke . 45 million plus on food stamps .
    • Luna 3 months ago
      there are 300,000,000 people in this country. 45 million is not that many. and before the economy crashed there were 37 million Americans on food stamps.

      now if it gets to 100,000,000 then that is cause for concern.

      we also need to look at who is receiving food stamps. in the last 5 years teen pregnancies have risen. so a lot of those girls are receiving food stamps. then you got to take a look at the welfare mothers who pop babies every year.

      my opinion is only 8 million of those 45 million people are receiving food stamps due to unemployment. but the rest of those people were on food stamps before the economy tanked.
    • Anonymous 3 months ago
      the rich make money. the poor make babies..
  • joe s  •  Kansas City, Missouri  •  3 months ago
    Why did not the article show the exact numbers of new jobs in government vs private?
    • Tyrone 3 months ago
      Because they are Liberals.
    • Ree Bellion 3 months ago
      Because it was about openings, and it was a summary of economic reports. If you go to the reports themselves you can find the hard numbers.
    • CORunner 3 months ago
      Truly, how lazy are you people? It is a news report, and they can't cover every detail, so you go look at the report if you want the details. Also, these aren't 'new jobs', but government jobs have been decreasing for months. Just because there are government openings doesn't mean they are increasing jobs.
  • Andy  •  Sunnyvale, California  •  3 months ago
    Keep eating the bitter melon, LOL!
    Comments today are the opposite of what was being posted in 2007 (when everyone believed job statistics & everyone was then saying consumers were strong).
    Now is a time like after a huge storm, most of the weak trees have been knocked down, the regions in danger of mudslides have taken off the loose soil, the Madoffs have been exposed and jailed, the weak companies died and everyone has been fearful for years). I love it.
    • Scott 3 months ago
      "Now is a time like being in the eye of a huge storm." Fixed it for ya Andy.
    • Andy 3 months ago
      The air pressure is at its lowest in eye of the storm-- every minute after that is recovery.
    • Scott 3 months ago
      Tell that to the guys on the Andrea Gail. Oh wait, they're dead.
  • A A  •  3 months ago
    I do believe there are more job postings....
    Staples part-time customer service. Dollar store part-time assistant manager. I even saw DunkinDonuts Cashier AND assistant manager.
    Welcome to the new America.
  • BD  •  Colorado Springs, Colorado  •  3 months ago
    Its a big scam. Unemployment has not declined. Check it out for yourself!

    According to the BLS, the ratio of non workers to workers in the USA increased from .558 to .569 from Jan to Jan. What is going on is that those who have been unemployed for a long time are no longer included in the unemployment percent figure. The ratio of unemploye to employed has been in the range of .505, from 1990 to 2007. This has now zoomed up to .569 and, has yet to show any sign of decreasing. The US will have to create 240,000 jobs per month for four years for the non working to working ratio to return to normal levels.

    Year Pop over 16 working not working ratio not working to working
    2007 231867 153124 78743 0.514
    2008 233788 154287 79501 0.515
    2009 235801 154142 81659 0.530
    2010 237830 153889 83941 0.545
    2011 239618 153617 86001 0.560

    2011 – Jan 238704 153250 85454 0.558
    2012 – Jan 242269 154395 87874 0.569
  • broke  •  Ferndale, Washington  •  3 months ago
    They just took 1.2 million people off the books, they are not getting counted anymore. There is the math folks.
  • Sean  •  Portland, Oregon  •  3 months ago
    The MSM sees green shoots when they emerge from their hole... therefore, 6 more years of depression.
  • snoopy-the-economist  •  Exeter, New Hampshire  •  3 months ago
    Great the economy is fixed.
    Perhaps someone should tell all the Americans collecting food stamps (1 out of 7 Americans) that they don't need them anymore.
    Perhaps Obama should stop spending $1.5 Trillion a year more than we take in - that's teh deficit for you liberals who don't understand math.
    The real unemployment rate is still close to 23% - check shadowstats.
  • il3dogs123  •  3 months ago
    Has anybody else noticed that now that it's coming up on election time EVERYTHING is improving?
  • Hottie  •  Twinsburg, Ohio  •  3 months ago
    An ugly trend in America is for companies to hire mostly part-time employees to avoid paying benefits, etc. Example, community colleges now hire mainly "adjunct" teachers rather than full-timers. They pay them squat with zero benefits. It's a big scam, but some people are desperate for any wages. Lowes and HD do likewise.
  • no, your friends cant wat ...  •  Westford, Massachusetts  •  3 months ago
    what a bunch of bull..theye are no jobs being created that pay more than $12 and hour. those are all still being shipped overseas.
    most of the jobs detailed in this story require the ability to speak..

    'welcome to wal-mart'
    ''do you want fries with that'
    'hello, my name is joe, can you spare a few minutes to take a survey'

    VOTE THE BUM'S OUT
  • Big Man  •  3 months ago
    Sure they have,pinocchio! Just in time for election year! Riiiiiiiggghhhtt!!!!!
  • mark  •  3 months ago
    Who is hiring, where do we apply?
  • bill  •  3 months ago
    OBAMA must be counting on the warmer weather when the ice cream stands and water ice places open then the jobs openings will realy jump.
  • ADIRONDACKS  •  Burlington, Vermont  •  3 months ago
    Don't ever put any stock in December labor figures. We all know that the job openings are for temporary minimum wage service jobs.
  • NoWayGray  •  Tulsa, Oklahoma  •  3 months ago
    Where I work we tons of openings but no one qualified to fill the positions. Did you think graduating with a degree in Women's Studies would guarantee you a six figure salary?
  • Austinski  •  San Francisco, California  •  3 months ago
    Complaining about the types of jobs pretty much sums up America these days. If you have to dig a ditch to eat, then dig a ditch!
 
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