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“November Job Openings Dip To 1.4 Per Available Worker — What’s the Impact?

It is no surprise that the job market was the most affected by the pandemic. As businesses cut costs, laid off workers, and shifted to remote operations, the demand for roles in the market decreased significantly. However, in the first week of November, the Bureau of Labor Statistics (BLS) released its newest figures, which show that the job openings have nudged down to 1.4 per available worker. This number is a decrease from the 1.5 openings that were reported in October and the 3.3 openings in the same period last year. The steep drop in the job openings is concerning because the high rate of job openings ought to signal a healthy labor market. A healthy economy should have more than one job opening for each available worker, as it allows for people to have a more or less equal choice and the chance to take their pick between different roles. The decreased rate of job openings signals a weakened economy, as it reflects the lack of new jobs that were created. Additionally, job openings seem to be concentrated in a few industries. Forbes reported that the leisure, hospitality, and retail sectors are the ones that sustained the most significant decline in job openings. The healthcare sector, on the other hand, posted a modest 2.3 percent increase in job openings, despite the increased demand for workers in this industry due to the coronavirus. Despite this effort to still keep afloat, a concentration of job openings within a few industries is concerning because it means that the market is oversaturated in some sectors. This in turn will cause reduced wages and fewer opportunities for job seekers, while also increasing inequity and widening the wealth and economic disparities. Government officials are his hands trying to find solutions to this problem, such as increasing the unemployment benefits and providing stimulus checks to impacted sectors. Additionally, many states have taken to providing funds to help businesses recover and rehire more workers. The current outlook in the labor market is grim, as job openings continue to decrease. This is happening as more workers are joining the unemployment rolls. Nonetheless, with the various measures that are being taken by states and federal organizations, the labor market will start to show more signs of recovery as the pandemic continues to subside.