It rarely occurs where there are more jobs open than there are unemployed people looking for one. This year we have started to see layoffs in the technology and communication sectors. But if these sectors represent the same number of job openings as they do in the total number of jobs in the economy, then they would have 184,907 total job openings. That’s out of 10.33 million.
Professional and Business Services would have 1.39 million jobs, health care would have 1.31 million jobs, retail trade would have 1 million jobs, leisure and hospitality would have 921 thousand, and manufacturing would have 800 thousand jobs. That means there are nearly 30 times more open jobs in these sectors than in tech and communications.
But the significance is that people that are leaving the job-losing sectors like information and communications, might be looking to get new jobs potentially in the job-demanding sectors.
What that does to the labor market is it pushes down the number of available jobs and keeps a similar number of unemployed people.
You can see that the level of unemployed people hasn’t really changed but the number of openings has come down significantly. There are two factors at play here. The first is the unwinding of openings in the first place, and the second is laid-off people are seeking new jobs.
The faster people are gobbling up the jobs in jobs-heavy sectors, the faster we get out of this, and can price in better days.
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