According to Reuters, position openings surged in July to a record high, but there was a lack in hiring. This seems to be due to employers struggling to find qualified workers to fill open positions. There were also tightening conditions in the labor market, which could help boost a faster wage growth. The skills gap continues to play a large role in the struggle to find qualified employees. In fact, it has been noted that the current skills gap is the worst in the nation’s history.
The hiring rate was unchanged from at 5.2 million or 3.6% in July for the second straight month.
However, hiring slowed in August. The biggest increases in hiring were in construction, retail, leisure & hospitality, professional and business services. Employees are gaining confidence and looking to risk job security to advance their careers, as the quit rate remained at 2.1% (3 million people), which is up from 1.3% in 2010. Layoffs remained stagnant at a three and a half year low of 1.1% (1.6 million people). The ratio of job openings to unemployment has hit a 15 year high.
Ultimately, the tightening labor market puts pressure on employers to move quickly on candidates who they would like to hire. The competition to find qualified employees will likely drive wage growth, which has been extremely slow over the past few years. Many employers may have to compromise on their requirements for hard, technical skills. This presents an opportunity to implement training programs for candidates with excellent soft skills who exhibit qualities of the company’s culture.
If you are experiencing difficulty hiring in Montgomery and Bucks County, please contact us today!