In February, job opportunities in the United States reached a two-year peak, while hiring increased as domestic demand increased, as a result of expanded COVID-19 vaccines and additional government pandemic assistance.
The monthly Work Openings and Workforce Turnover Survey, or JOLTS, released by the Labor Department on Tuesday, was the latest sign that the labour market had turned the corner, since losing employment in December, as the country grappled with a new wave of COVID-19 infections and depleted government aid.
“As businesses prepare for a post-pandemic burst of pent-up demand, labour demand could begin to heat up,” Lydia Boussour, lead U.S. economist at Oxford Economics in New York, said.
As of the last day of February, the number of job openings had risen by 268,000 to 7.4 million. This was the largest number of work vacancies since January 2019, and it was 5.1 percent higher than pre-pandemic levels.
In the health care and social support sector, there were an extra 233,000 job vacancies. The lodging and food services market, which was one of the worst hit by the pandemic, saw a 104,000 employment boost. The number of job vacancies in the arts, culture, and leisure sector increased by 56,000.
However, the number of vacancies in state and local government education, as well as educational facilities and records, has declined. Reuters polled analysts, who estimated that job vacancies would grow to 6.995 million in February. The announcement came after the economy gained 916,000 jobs in March, the highest in seven months, according to data released on Friday.
A rise in the levels of COVID-19 vaccines, as well as the White House’s newly enacted $1.9 trillion pandemic relief programme, which provides extra $1,400 tests for eligible households and new funding for companies, are helping to improve the job market.
As more service companies reopen, labour demand will rise even more. The Centers for Disease Control and Prevention in the United States said on Friday that people who are properly vaccinated would fly with “low risk.”
According to a study released on Monday, by the Institute for Supply Management, service companies have “recalled everyone, placed them on waivers, and made new hires” and have “added additional workers to service the demands of new clients at new sites.”
The number of people hired increased by 273,000 in February, the most in nine months, to 5.7 million. The recruiting rate increased to 4.0 percent from 3.8 percent in January as a result of this. The lodging and food services companies, which produced 220,000 jobs, were the most involved in recruiting. However, hiring of state and local government education has declined.
“The job market is improving, but we’re still a long way from what the Federal Reserve will call the conditions for full jobs,” said John Ryding, chief economic advisor at Brean Capital in New York.
The Federal Reserve of the United States has stated that it would keep its ultra-easy monetary policies in place for a while, to prepare for maximum recovery.
Competition for workers remains fierce, with unemployment far above pre-pandemic peaks. In February, there were 1.4 unemployed workers for every available job, up from 0.82 on the eve of the first round of pandemic lockdowns a year before.
“This means employers will have an easier time recruiting,” said Nick Bunker, Director of analysis at Indeed Hiring Lab. “However, work applicants will also lack the bargaining power they had prior to the pandemic.”
The number of workers laid off rose to 1.8 million in February from 1.7 million in January, leading to work losses in the banking and insurance sectors. At 1.2 percent, the rate of unemployment remained unchanged.
“New strains of the virus and a refusal to follow health advice could amplify the economic effects of the pandemic,” Sophia Koropeckyj, a senior economist at Moody’s Analytics in West Chester, Pennsylvania, said. “In addition, the magnitude of the crisis, which resulted in the closure of many businesses, means that many sectors would take time to recover.”
The number of workers leaving their jobs willingly grew to 3.4 million in February, up from 3.3 million in January. At 2.3 percent, the leave rate remained unchanged.
Policymakers and analysts typically use the quits rate as a gauge of labour market optimism. However, the pandemic has caused millions of women to leave the workforce, mostly due to child care issues, and many colleges now only provide online instruction.
