WASHINGTON (7/8/15)--While job openings continued to climb in May, hiring took a step back, according to the Bureau of Labor Statistics’ monthly job openings and labor turnover survey, released Tuesday.
This may signal that employers are having a hard time filling their available positions (Economy.com July 7).
“This is consistent with ... our weekly business confidence survey that suggests the supply/cost of labor is moving up,” said Ryan Sweet, Moody’s analyst (Economy.com).
Job openings rose to 5.363 million in May, pushing openings up by 775,000 on a year-over-year basis and to its highest number since the survey’s inception in 2000.
Total hiring, meanwhile, fell to 5 million in May from 5.034 million in April, with hiring trends mixed across industries.
Professional/business services posted the largest declines in hiring, followed by construction and manufacturing. Retail, leisure/hospitality and education/health services all recorded gains during the month.
As far as solving the hiring problem, Sweet said the answer could lie in pumping up wages.
“Wage growth was soft in June, but that shouldn’t overshadow signs that slack is diminishing quickly and the much anticipated improvement in wage growth is near, if not already under way,” Sweet said. “At the current pace, slack will evaporate more quickly than we expect.”