There are plenty of jobs, but not enough workers, BLS reports

Over four million Americans left their jobs in October, pushing demand for employees to record highs in October as U.S. businesses scramble to fill vacancies.

A Bureau of Labor Statistics (BLS) survey released on Wednesday showed that the number of individuals who left their jobs for new opportunities made up 2.8 percent of the workforce. The survey also found that businesses posted 11 million job openings in October. Hires, however, stayed even at 6.5 million, The Hill reported.

Yet while the number of workers who left their job voluntarily decreased slightly, the number of job openings per unemployed worker is at an all-time high.

“This report once again shows strong demand from employers leading to a hot labor market,” wrote Nick Bunker, an economist at Indeed. “The bargaining table is tilted more toward workers than it has been in the past. … The question now is whether the omicron variant cools down in the labor market.”

“While joblessness certainly isn’t still back at levels we saw before the pandemic, there’s so much demand that we’re in a pretty hot, tight labor market,” he added. 

Wednesday’s data signaled yet another slight improvement within the labor market as American businesses added 546,000 jobs in October and saw the unemployment rate drop to 4.6 percent.

Although job growth dropped in November, the steep drop in the unemployment rate signaled the growing strength of the labor market.

The study also suggests that although consumer spending has risen above pre-pandemic levels, many businesses are having trouble filling vacancies. Although there are plenty of jobs, a smaller labor force has allowed workers to be more prudent about which offers they ultimately accept.   

“It means that competition for workers is going to be higher, which means they’ll have relatively more bargaining power and be able to negotiate for higher wages,” Bunker said.

Presently, about half of those leaving their jobs worked in healthcare, retail and hospitality – all industries which require necessary in-person interaction.

“Workers are heading for the exits in search of greener pastures and work-from-home opportunities,” Murray wrote in an analysis. 

“Businesses continue to hire at a brisk pace. Still, firms are creating new positions, and quitting remains high. As a result, finding qualified workers remained a challenge, a headwind for the recovery.”

But while the Biden administration and sympathetic economists have touted the hot labor market as a win for the working class, the increased demand could be adding pressure toward high inflation.

Democratic lawmaker Sen. Joe Manchin has voiced concerns about the potential inflationary impact of Biden’s “Build Back Better” agenda, a $1.75 trillion social services and climate plan.

“We’ve got to make sure we get this right. We can’t afford to continue to flood the market as we’ve done,” Manchin said Wednesday.