Friday, December 10, 2010

Rising trend in career openings has economist thinking positive

In Oct more job openings became available in the U.S. since the fall of 2008. After last week’s Labor Department report showed a fresh spike in the unemployment rate, job opportunities data was a breath of fresh air. The Oct job opportunities numbers, according to economists, might be an indication that hiring may gain some momentum early next year.

Viewing the job openings report for Oct

Job openings in Oct rose to 3.4 million, an increase from 3 million reported in September. We’re able to look at the Labor Department's Job Openings and Labor Turnover Survey. It showed that there was a 12 percent month-to-month increase which meant the decline within the 2 previous months was reversed. October job opportunities arrived at the highest total since August 2008, when the financial markets were on the brink of collapse. In October, there was a rise of 369,000 private sector job opportunities. Since 2006, there hasn't been anything that big. Then there were a lot of advertised job openings by the JOLTS. About 1 million were advertised. That means that from the low point, there was a 44 percent increase. In July 2009, which was a month after the recession ended tech! nically, the low point was reached.

Individuals with no careers nevertheless giving job opportunities too many applications

From Oct 2009, there was a 32 percent increase in career openings. The 14.8 million nevertheless unemployed hurts that number though. Getting a job isn't easy. There’s a lot of competition. The JOLTS report showed there were 4.4 people going after each October career opening. The number is getting much better though since in September it was 4.9 people per job and since January 2009, it is the best number. Despite the gains, the hole blasted in employment by the recession is deep. Sunday, Federal Reserve Chairman Ben Bernanke was on the CBS News program "60 Minutes." He said the joblessness will not go back to the "normal" 5 to 6 percent for another five years or so.

Not as much of a poor job industry

Bernanke's estimate may have changed if he realized the career opportunities statement would show a sign of accelerate hiring. There are economists who look at the JOLTS report as an indicator of hiring up to three months down the road. Last month's jobs statement is "a bump in the road" according to an economist at Credit Suisse in New York since the November job creation statement wasn't very good. The JOLTS report might be interpreted as a sign that the job market is on the verge of emerging from limbo.

Citations

ABC News

abcnews.go.com/Business/wireStory?id=12332380&page=2

Business Week

businessweek.com/news/2010-12-07/job-openings-in-u-s-rise-pointing-to-bigger-payroll-increases.html

MarketWatch

marketwatch.com/story/job-openings-rise-to-34-million-in-october-2010-12-07



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