Hiring Continues To Lag Growth In Job Openings

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by: David I. Templeton, CFA
Summary

In the latest Job Openings and Labor Turnover Survey, the level of openings increased by 346,000.

However, job hires fell 35,000.

The fact that the hiring level is lagging the growth in openings is a sign companies are having a difficult time finding qualified individuals to fill open positions.

In the recent Job Openings and Labor Turnover Survey, the level of openings increased by 346,000, while job hires fell 35,000. Openings remain at a high level but began to decline starting in December last year. The fact that the hiring level is lagging the growth in openings is a sign companies are having a difficult time finding qualified individuals to fill open positions. This hiring difficulty is showing up in the NFIB Small Business Optimism Index survey. The most recent NFIB report noted, "22% of owners cited the difficulty of finding qualified workers as their Single Most Important Business Problem, only 4 percentage points below the record high." This strength in the employment area is one sign of a healthy business environment.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.