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Job openings per unemployed person continue rising in the U.S.

Yahoo Finance Live's Brian Cheung breaks down the chart of the day.

Video Transcript

BRIAN CHEUNG: Well, it's 11:24, and we all know what that means. It's time for our Chart of the Day. And today, we're talking about job vacancies. Now if you've ever experienced slow service at the restaurant or understaffing at the department store, that's because businesses can't plug job postings to meet consumer demand. And this data combines JOLTS data and monthly jobs data, and it shows the amount of job openings per unemployed person in the US. And you could see the latest data as of April showing a continued rise in the amount of job postings for every unemployed person, which seems pretty out of balance, about 2 to 1 right now.

So that means that as we talk about recessionary concerns, is the unemployment picture going to change as the Federal Reserve raises interest rates, the idea is, maybe you could avoid getting the unemployment rate higher if higher rates incentivize businesses to, instead of firing people or laying off people, simply reducing the amount of job postings that they have out there. This is a talking point for the Federal Reserve officials that have been saying, Akiko, look, we can pull off this soft landing without substantially raising the unemployment rate.

AKIKO FUJITA: And yet, we still hear from businesses who are saying, we can't fill the jobs, right?

BRIAN CHEUNG: Well, the idea, though, is that if the demand is going down, people are going out to eat less, people are going out to spend less. Then maybe those businesses won't need to fill a lot of these job openings, and that the job postings, to begin with, were simply because there was actually an unreliable, un kind of robust amount of demand for all those goods and services.