U.S. job vacancies surged close to the strongest level in nearly 7 years, an indication that the labor market may support economic growth in the final six months of the year.
The Labor Department reported that job openings grew by 171,000 to 4.64 million, the highest level since June 2007. The ratio of unemployed persons per vacancy also declined to a six-year low. The data, which was released on Tuesday, is one of the key indicators used by the Federal Reserve Chair Janet Yellen to determine the health of the labor market.
There are about 2.1 jobless persons per single vacancy, the lowest since May 2008. The figure stood at 1.8 job seekers per vacancy just before the economic recession started in December 2007.Last week’s data showed that payrolls grew faster than expected in June while the jobless rate declined close to a six-year low. The nonfarm payrolls grew by 288,000 employees last month, up from May’s reading of 224,000. Unemployment rate fell to 6.1 percent from the earlier reading of 6.3 percent.
“Openings are beginning to move in ways that inspires more confidence in the labor market,” Terry Sheehan, a Princeton, New Jersey-based economic analyst at Stone & McCarthy Research Associates told Bloomberg. “It’s a pretty stable job market that’s improving incrementally. It’s good for the Fed.”
Job vacancies surged in industries, business service providers, construction firms and healthcare sector. The rate of job vacancies grew to 3.2 percent in May, the most since August 2007, up from 3.1 percent. The number of workers who got jobs stood at 4.72 million in May, compared with April’s reading of 4.77 percent. This lowered the hiring rate from 3.5 percent to 3.4 percent. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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