Skip to comments.Why is hiring so much lower than new job openings?
Posted on 08/17/2013 4:17:00 PM PDT by 2ndDivisionVet
Both Dr. James Joyner and Bloombergs Peter Orszag are looking into a rather puzzling pair of statistics from the labor market this week. Posted job openings around the country are up roughly 50%, but new hires have only risen by 5%. What can account for the disparity in these numbers? It would seem that if companies are posting that many more openings, surely hiring should be on the rise in comparable numbers, and yet its not happening.
To get some sense of how significant this is, consider that if, since June 2010, hiring had risen a third as much as advertised jobs have (rather than only a 10th), and nothing else were different, job creation would be roughly 500,000 higher each month, and the unemployment rate would already be back to normal levels.
So what explains the yawning gap between jobs open and jobs filled?
Orszag floats four theories that have been offered:
Theres a mismatch between the skills needed and those available on the market Employers are offering wages too low to attract applicants Jobs are mostly being filled with internal candidates Firms have reduced their recruiting intensity, and just arent that excited to fill openings
He argues pretty good reasons to discount any of these as likely explanations for much of the gap. He concludes,
Regardless of the true explanation, its still good news that more jobs are being advertised. That wouldnt be happening if the economic outlook were entirely bleak.
But, if nobodys hiring, the economic outlook is pretty damned bleak for the unemployed and underemployed.
As with most cases when we attempt to analyze a trend taking place involving tens of millions of people, I suspect the answer isnt just one driving phenomenon, but rather a combination of factors.....
(Excerpt) Read more at hotair.com ...
because the new openings are for minimum wage?
EBT’S are free, work is hard
All kinds of people looking for workers here:
Felonies, suspended drivers licenses, can’t pass a drug
test, unable to read and write functionally, body “art”, etc
are some possible reasons, based on my conversations with
people who are in a position to hire people.
Wages have been stagnant for a dozen years now, as the U.S. government and global banking mobsters continue to devalue the dollar.
Work harder for less and less...As price of nearly everything increases...
I can say in my case that's true. Thankfully I make a very good living salary wise, but the reality is I'm making now what I made back in 2001. Granted what I used to make in Salary + Bonus (and bonus' were never guaranteed back then) I now make in Salary alone, but I no longer get what I'd call a "bonus."
Isn’t it funny, all these employers drug test, yet cops, government public school teachers, the congress, POTUS, Mayors, city council members, county commissioners, judges, etc, are not randomly drug tested. Unlike the lowly slob at Home Depot and others making 10 bucks an hour...I find this very odd.
I happen to be one of them. I applied to many so far nothing. Well I’ll just keep moving forward some how.
Absolutely...No wonder most young people no longer hardly try...Private sector dead stagnate wages, cost of schooling through the flipping roof, with most colleges jammed with foreigners, no benefits, no medical....In fact those things will soon take 50 percent of whatever they make...
Add in the fact the government/globalist are devaluing our dollar, worth less and less, as the price of nearly everything in the U.S. goes up and up and up...
For most young people in the U.S., their futures are totally 100 percent screwed...
Guest worker fraud or the like?
Some of those advertised openings aren’t meant to be filled, but to say that nobody is qualified.
I think that the explanation may be that the job openings are in just a few limited areas of the country (e.g., Texas, the Dakotas) with low unemployment and not where people are looking for jobs locally.
Some employers drag the process out looking for the absolutely perfect fit, which doesn’t exist.
Also, in the high tech biz, the requirements are so specific that only about one in 100,000 people have that SPCIFIC combination of skills and experience. What, they really think they’re going to get away with not having some sort of learning curve for a new hire?
Welcome to reality...The new America....Ya best get in line for a government job...
I know people who worked 25 years for local government, retired at 50 years old, making $80,000 per year on bloated obscene, country killing government retirement pensions. Then they bitch it's not enough...
“I happen to be one of them. I applied to many so far nothing. Well Ill just keep moving forward some how.”
Me too. I drove three hundred miles for a job interview recently. I asked for a fair wage, nothing even fancy. But they want people who will work long hours for peanuts and weren’t even willing to provide benefits or health insurance.
I get sick of these sneering Freepers who act like these companies are so noble and there is something wrong with our work ethic. The traditional way of working your way up isn’t nearly as easy at it used to be.
No kidding. I just had to go for a drug test Friday. I have
to do them before each travel contract I go on (nurse). You
would think as a 55 year old granny who has passed about 10
of them, at some point they would let it go.
Couple of years ago I had hard work but good paying job in tax settlement. The owner put an ad in on Craigslist and had over 400 applicants. He cut our commissions in half. In In one day it went to hard work low paying.
To add insult to injury, the super wealthy globalist insiders, U.S. Gov and their co-conspirators world bankster elite are intentionally and clearly devaluing the dollar...Ever dollar ya make buys less and less and less...It's why even most of those married young people with two incomes are screwed... Their wages are not and will not keep up....Bet the rent.
The 1996 Welfare Reform Act required able-bodied welfare applicants to accept available jobs (Workfare) instead of joining the welfare rolls.
But Obama has allowed state exemptions to this rule, so it’s no wonder fewer people are taking jobs. Everyone just goes on welfare.
Not to mention the fact that since so many people have gone on disability during the Obama years, many fewer Americans each year are considered ‘’able-bodied,’’ and therefore they are not required to accept available jobs.
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