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Why is hiring so much lower than new job openings?
Hot Air ^ | August 17, 2013 | Jazz Shaw

Posted on 08/17/2013 4:17:00 PM PDT by 2ndDivisionVet

Both Dr. James Joyner and Bloomberg’s 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 it’s not happening.

Orszag:

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?

Joyner:

Orszag floats four theories that have been offered:

There’s 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 aren’t 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, it’s still good news that more jobs are being advertised. That wouldn’t be happening if the economic outlook were entirely bleak.

But, if nobody’s 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” isn’t just one driving phenomenon, but rather a combination of factors.....

(Excerpt) Read more at hotair.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: economy; employment; jobseekers; obama; recession; unemployment
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Potemkin village.
1 posted on 08/17/2013 4:17:00 PM PDT by 2ndDivisionVet
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To: 2ndDivisionVet

because the new openings are for minimum wage?


2 posted on 08/17/2013 4:19:03 PM PDT by Mr. K (Lies, Damned Lies, and Statistics, and then Democrat Talking Points.)
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To: Mr. K

EBT’S are free, work is hard


3 posted on 08/17/2013 4:20:03 PM PDT by max americana (fired liberals in our company after the election, & laughed while they cried (true story))
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To: Mr. K

All kinds of people looking for workers here:
http://www.indeed.com/jobs?l=76004&rq=1&fromage=last


4 posted on 08/17/2013 4:21:28 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: Mr. K

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.


5 posted on 08/17/2013 4:24:19 PM PDT by americas.best.days... ( I think we can now say that they are behind us.)
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To: 2ndDivisionVet

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...


6 posted on 08/17/2013 4:26:38 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2
Wages have been stagnant for a dozen years now..

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."

7 posted on 08/17/2013 4:29:58 PM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: americas.best.days...

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.


8 posted on 08/17/2013 4:31:52 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: 2ndDivisionVet

I happen to be one of them. I applied to many so far nothing. Well I’ll just keep moving forward some how.


9 posted on 08/17/2013 4:34:16 PM PDT by Patriot Babe
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To: usconservative

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...


10 posted on 08/17/2013 4:36:56 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: 2ndDivisionVet

Guest worker fraud or the like?

Some of those advertised openings aren’t meant to be filled, but to say that nobody is qualified.


11 posted on 08/17/2013 4:37:34 PM PDT by setha (It is past time for the United States to take back what the world took away.)
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To: 2ndDivisionVet

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.


12 posted on 08/17/2013 4:37:37 PM PDT by expat2
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To: 2ndDivisionVet

Some employers drag the process out looking for the absolutely perfect fit, which doesn’t exist.


13 posted on 08/17/2013 4:42:35 PM PDT by Nepeta
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To: 2ndDivisionVet

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?


14 posted on 08/17/2013 4:44:32 PM PDT by NurdlyPeon (It is the nature of liberals to pervert whatever they touch.)
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To: usconservative
but the reality is I'm making now what I made back in 2001

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...

No joke.

15 posted on 08/17/2013 4:47:36 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: Patriot Babe

“I happen to be one of them. I applied to many so far nothing. Well I’ll 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.


16 posted on 08/17/2013 4:50:10 PM PDT by Luke21
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To: dragnet2

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.


17 posted on 08/17/2013 4:50:50 PM PDT by americas.best.days... ( I think we can now say that they are behind us.)
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To: usconservative

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.


18 posted on 08/17/2013 4:54:30 PM PDT by Blackirish (Forward Comrades!!!!!!!!!)
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To: Luke21
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.

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.

19 posted on 08/17/2013 4:57:20 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: 2ndDivisionVet

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.


20 posted on 08/17/2013 5:00:22 PM PDT by Bluestocking
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To: NurdlyPeon

In tech you will see posts like this:

Searching for highly skilled programmer with PHP, MySQL, Flash, HTML, CSS, Photoshop, Illustrator, SEO, Javascript, Java, Net Beans, C++, ASP, C#. Must be willing to work 80+ hours per week to complete the job on time and under budget.

Must have a portfolio and be willing produce part of our project for free in order to prove you have the skills.

$15.00 per hour. No H1 Visas please.


21 posted on 08/17/2013 5:09:21 PM PDT by willyd (I for one welcome our NSA overlords)
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To: dragnet2
Unlike the lowly slob at Home Depot and others making 10 bucks an hour...

The lowly slob making 10 bucks an hour at Home Despot drives a fork-lift around customers. That's why he gets drug tested.

If drug testing is such a wonderful thing, I want to see a lot more of it: Congressmen, Senators, President, Secretaries, Generals. Oh, Welfare recipients first in line. They're most likely to redirect their handouts to the black market for drugs. Watch them pee, can't have cheating.

22 posted on 08/17/2013 5:09:59 PM PDT by Cyber Liberty (It wasn't the Rodeo Clown's act, it was the crowd reaction they could't take.)
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To: 2ndDivisionVet

I learned during my working years that many companies list jobs, even though they did not have job openings or they already had someone in mind to fill those jobs.

One reason was to explore the available talent as they worked on prosals for new contracts. They could get a ‘feel’ for how many potential qualified employees were in a particular area.

Another reason was to fulfill state and/national regulations, such as a job had to be posted x number of days to the general public before it could be filled.


23 posted on 08/17/2013 5:18:48 PM PDT by TomGuy (.)
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To: expat2

24 posted on 08/17/2013 5:21:34 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: Luke21; Patriot Babe

FReepmail me your resumes, I’ll try to find something. Been a career counselor and recruiter since 1983.


25 posted on 08/17/2013 5:23:37 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: 2ndDivisionVet

Job opens up, illegal get job and since he is not reflected in the labor pool the number of unemployed does not go down. Then the guy can’t hack the job; Terminate and repeat.


26 posted on 08/17/2013 5:26:29 PM PDT by Mike Darancette (Kill Obamacare not wound it.)
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To: Cyber Liberty
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.

And cops with guns? Judges passing down sentences making decisions affecting many peoples entire lives?

How about Potus, congress, they mayor and city council where you live? Do these people's decisions not affect hundreds, thousands and millions?

Hello?

How about the drug testers? Did you know they are not randomly drug tested, yet they have your live and many others in their hands?

But randomly drug test home depot boy?

What's up with that Mr. Liberty?

27 posted on 08/17/2013 5:27:15 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: Cyber Liberty
I went to a meeting one time, to a facility that was going to perform random drug testing on a group of low wage people...In the meeting I asked them if they randomly drug tested their own people performing the drugs tests on others...

They said of course not, and gave me a real arrogant look...

This is what I'm talking about..

28 posted on 08/17/2013 5:34:13 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

I don’t like drug testing. I don’t like the “drug war.” But I am simply pointing out the rational behind wanting the Home Depot guy being tested for drugs. What more can I say, Mr. Dragnet?

I think I listed for testing about everybody you say I’d exempt from testing, so I’ll come back later on, if at all. I’m just not in the mood for folks who don’t read what I wrote.


29 posted on 08/17/2013 5:36:58 PM PDT by Cyber Liberty (It wasn't the Rodeo Clown's act, it was the crowd reaction they could't take.)
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To: willyd

That reminded me of a technical editor job I applied for about 15 years ago.

In order to check my capabilities, they handed me a 100 page manual and wanted me to mark it up.

Yeah, right. They wanted me to mark it up, so that they didn’t need to hire some. I had had some similar experiences with other potential ‘employers’.

I marked up the first 10 pages and wrote a note that that would give them an idea of my capabilities. Of course, I never heard from them again.

==

Another time, I was being interviewed by a guy who wanted to start of Technical Writing Department in his small company. He asked me all kinds of questions and had me walk him through the process I would use to establish the department.

He was writing furiously as I talked.

At the conclusion of the interview, he said they would let me know.

Next I ‘heard’ was an ad in the newpaper wanting someone to set up a Technical Writing Department. The requirements were to set it up according to certain steps. Ironically, most of those steps were word-for-word how I defined them to the guy a few weeks earlier. The salary listed was about half of what I told them I would need, and the newspaper ad put the salary in the range of a glorified clerk’s salary.


30 posted on 08/17/2013 5:38:15 PM PDT by TomGuy (.)
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To: Cyber Liberty

Wait a minute Mr. Liberty, you’re all for randomly testing low wage home depot employees but not randomly tesing judges, cops with guns, school teachers, congress and the drug testers themselves?


31 posted on 08/17/2013 5:39:09 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2; Cringing Negativism Network
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...


I was talking about this with a lot of my friends. A few of my best friends are homosexual and one of them told me, "I'm glad I don't have any kids or want them, I mean, what type of jobs will there be for them when they grow up." I replied where my father and I, "wonder where the little kids of today are going to work and find jobs." It's bad enough for us middle agers and the people following us.

Another friend at our little round table said, "we will have a future like Star Trek where everybody will get a standard guaranteed wage and a basic place to live and to get beyond that, you will have to work for it." I don't know about that, but who knows, if we keep head in the current direction, we could end up there, especially if and when robots start doing the work.

All I know is that both sides of the political isle sold us out. The Democrats with their restrictive laws like the EPA, OSHA and so on along with high taxes and the other side, the Republicans (RINO's) and some Democrat who sold out to the highest bidder with the "free trade" agreements where it hurts us but helps our adversaries. In an ideal situation, free trade is the way to go but we do not live in an ideal world. Nations are like people, need to look out for their own interests and I do see that we as a nation are not doing that. We do need to bring the jobs home with a combination of reduced regulations to a sensible level and reduced taxes and on the other side of the coin, dare I say, tarriffs.

We also need ways to deal with the massive mental depression that many people go through when they are put out of work and are trying to look for work but get passed over. I even heard of an interesting idea where people who are 45 and over, would be given a option to take a million dollars, tax free, if they would either stop looking for work or give up their jobs to open it up to the younger people along with giving up social security and invest part of the money into a private retirement plan. They would also be barred from entering the work force for 10 years although if they are able to, start a business to create jobs. We were just brainstorming this one night.

Ping to CNN, we need to bring the jobs back now.
32 posted on 08/17/2013 5:39:33 PM PDT by Nowhere Man ("We have met the enemy, he is us!" - Pogo Possum - 1971)
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To: 2ndDivisionVet
Both Dr. James Joyner and Bloomberg’s Peter Orszag are looking into a rather puzzling pair of statistics from the labor market this week.

Problem #1: how much do you trust government statistics?

33 posted on 08/17/2013 5:39:38 PM PDT by Pan_Yan
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To: Patriot Babe
I happen to be one of them. I applied to many so far nothing. Well I’ll just keep moving forward some how.

Me too, and I'm looking for part-time for the time being since I have to take care of Mom who is fighting breast cancer. Then I'd like to go full-time after she is better, she is doing quite good now but needs extra care.
34 posted on 08/17/2013 5:41:12 PM PDT by Nowhere Man ("We have met the enemy, he is us!" - Pogo Possum - 1971)
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To: Nowhere Man
Jobs are not coming back and the democrats and repulicans are all riding in the same limo...It's the global bankers and the super wealthy elite making our dollar worthless...

Ya got half the adults in this country working part time now...We all know why...Half the country is making mid-1990s wages....Now their told they have no more benefits or medical and now they have to pay thousands for that out of their phony pay checks...

All this while the cost of everything climbs up and up...

We're screwed bad...

35 posted on 08/17/2013 5:45:51 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: TomGuy

“I learned during my working years that many companies list jobs, even though they did not have job openings or they already had someone in mind to fill those jobs.”

B-I-N-G-O

I know for a fact that many companies post their openings for a minimum of two weeks even if they already know who they want to hire or if they’re going to hire at all. A job posting does not equate a legitimate “open” position for which a company is looking to hire an outsider to fill it. This may be a Federal labor thing, I don’t know.

I was out of work for almost a year in 2009. I submitted literally thousands of resumes and would receive a response about every 200 or so. After 10 months I was lucky enough to find a job as a temp employee making 2/3’s what I had been making prior. Spent a year there and then found a regular full-time job making a little more but it was much more stable. Been there three years and now it looks like I’m going to move on to my current employer’s parent company with a healthy raise.

It’s only taken me 4 years to get back to what I was making 8 years ago. But, Hell, plenty others have it worse.


36 posted on 08/17/2013 5:52:08 PM PDT by FAA
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To: dragnet2
or the welfare RATS sucking the public teat dry...
37 posted on 08/17/2013 5:52:10 PM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: max americana

38 posted on 08/17/2013 5:54:04 PM PDT by Delta 21 (Oh Crap !! Did I say that out loud ??!??)
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To: Luke21
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.

Agreed. They do not understand that the paradigm has shifted. If this was 1969/70 where we had 3.5% to 4% unemployment or even the 1980's after Reagan kicked in, I would be the first to yell, "get a job!" However, now, I am not. The rot really started in the 1970's but it started to gain a little speed from the mid 1990's and then in the 200x era, kicked into high gear. As I get older, there are no true "white hats" really. There are a good number of "black hats" and "grey hats" of varying hues.

I've talked to many of my generation, I'm 47, middle aged. One mechanic I know, he graduated a few years before me, so he's pushing 50, he said, "if the doc says that I have cancer, I'd by happy and will just go and check out." That's sad. B-( I still believe in fighting to stay alive, heck, Mom will be 75 this week and she's fighting breast cancer to stay alive and she is doing quite well and I hope that continues. It's a shame that many people feel like my mechanic friend. B-(
39 posted on 08/17/2013 5:55:16 PM PDT by Nowhere Man ("We have met the enemy, he is us!" - Pogo Possum - 1971)
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To: willyd

80+ hours a week, crap, I’d be falling asleep driving my Blazer home. The downside is who’s gonna take care of Mom and my two cats if I go out in a flaming fireball on the highway where there ain’t enough of me to pick up with a spatula. I’m not against working hard, but geez, there is a limit.


40 posted on 08/17/2013 5:58:16 PM PDT by Nowhere Man ("We have met the enemy, he is us!" - Pogo Possum - 1971)
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To: 2ndDivisionVet

Im curious if their data include temp position’s being filled. That’s all that’s out there right now in Houston. I just had my second job offer fall through as they simply kept it internal. I spent my time and gas money to interview, them knowing the whole time they had a person internally in mind, but HR forced them appear as if the posting was open.

I don’t buy the line about companies not being able to find skilled labor. It’s much more likely they don’t want to train anyone or their expectations are ridiculous. You should see the system admin job postings out there. Many have been up for months, looking for senior level in an insanely broad array of products, but only paying at entry or mid level. I asked an Agency about it and they said it’s been a growing problem. Companies are looking to replace people that have jumped ship and they expect to find someone with nearly the same skill set. They rely on contract work which stifles growth and creates high turn over, then they look down on you as a job hopper because all that is out there are short term contracts. Greed, corrupt culture, and lack of investment in personnel is killing long term job growth in this country and Congress and our idiot Gov leadership are making matters worse.

Year after year it is getting more ridiculous. Companies are paying less, asking for more, and giving less. No more bonuses, no parking reimbursement, zero training or investment. I wont be surprised to see companies offload their computer fee’s on their workforce by charging a rental fee.


41 posted on 08/17/2013 5:58:51 PM PDT by drunknsage
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To: dragnet2

We are screwed, the question now is, “how long do we have before the music stops” and things fly apart?


42 posted on 08/17/2013 6:01:30 PM PDT by Nowhere Man ("We have met the enemy, he is us!" - Pogo Possum - 1971)
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To: drunknsage
Year after year it is getting more ridiculous. Companies are paying less, asking for more, and giving less. No more bonuses, no parking reimbursement, zero training or investment. I wont be surprised to see companies offload their computer fee’s on their workforce by charging a rental fee.

My father said the same thing. He said that they want to pay so little but they want so much. He added where they want "you to be able to work from just outside the box, just plug you in and go." (BTW, I strongly feel at one job, I was a victim of that, they expected you to jump in after a few days to a week) He added, "That's wrong, companies should invest time in people to train them, much like they used to but not anymore." My father learned photography in the Army but I'm sure he was trained and learn more when he got his first job in the private sector.
43 posted on 08/17/2013 6:06:02 PM PDT by Nowhere Man ("We have met the enemy, he is us!" - Pogo Possum - 1971)
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To: 2ndDivisionVet

Because the federal government pays able bodied people not to work.


44 posted on 08/17/2013 6:12:46 PM PDT by Iron Munro (To learn who rules over you, simply find out who you are not allowed to criticize - Voltaire)
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To: Nowhere Man

My bet the wheels come off prior to Obama going back to Chicago.


45 posted on 08/17/2013 6:22:55 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: 2ndDivisionVet

Because by law they have to advertise for employment even though they already know which relative or illegal will have the job. They love to pay under the table.


46 posted on 08/17/2013 6:58:17 PM PDT by stilloftyhenight
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To: 2ndDivisionVet

I have spent the last four years working to move up to higher management levels in keeping with my experience. Recently, my company redefined the job descriptions so that the next level has been brought down to where I am now, so that not only will I not be moving up, many of those who are at the old higher levels will be stepped down. They say that I will have an equal chance to move up to the new next level, but I am already seeing that is not going to be reality. The ones who are facing massive pay cuts will get first shot at the limited number of positions. Who knows how long it will be before I get a shot at the new next level? I suspect that the next step is to cut hours of the hourly workers at my level to avoid Obamacare mandates.


47 posted on 08/17/2013 7:01:07 PM PDT by yawningotter
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To: Nowhere Man

Wow sorry to hear about your mom. All this makes it more difficult but glad to hear that at least she is feeling a little better and that gives you a sense of continuing. Why don’t you send your resume to 2ndVet, I guess he won’t mind.


48 posted on 08/17/2013 7:25:31 PM PDT by Patriot Babe
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To: 2ndDivisionVet

Head hunters advertising to reach one certain individual for the purpose of stealing him/her from one company for another.


49 posted on 08/17/2013 7:29:29 PM PDT by dalereed (uickly)
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To: dalereed
Head hunters advertising to reach one certain individual for the purpose of stealing him/her from one company for another.

Pretty much to get a job, you already have to have one.

50 posted on 08/17/2013 7:30:18 PM PDT by dfwgator
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