February’s Bureau of Labor Statistics report shows there are now 1.8 job openings in America for every one unemployed worker. That’s five million more job openings than workers who report being unemployed but are actively seeking a job.
Xavier Economics Professor Dr. Jose Bautista told WWL government support handed out throughout the pandemic means many of those seeking a job are able to hold out for better-paying gigs, instead of having to hop right into the numerous lower-paying jobs available as they would have in the past.
“As a result, the labor market has become more competitive,” said Bautista, who said Bautista that the gap between available jobs and workers looking to work them is putting a lot of pressure on business owners. “You see businesses compelled to raise wage offers at higher rates.”
According to a CNBC report, economists expect wages to be up 5.5% year to year for February.
Bautista warns as what was once thought to be a short-term pandemic era trend becomes a long-term trajectory, expect efforts at automation to ramp up even faster than before.
“A greater infusion of technology, which contributes to another problem that we call structural unemployment where machines are replacing people,” said Bautista.
The job openings as a percentage of the workforce increased slightly from January to February, up from 2.8% to 2.9%.
