Giant Gap Persists Between Job Openings and Available Workers

U.S. job openings continue to far outpace the number of available workers, with nearly five million more open positions than people seeking work.

There are around 11 million job openings in the U.S., according to estimates from job-search site ZipRecruiter, based on their analysis of online job postings and government data sources. That compares with 6.9 million people who are unemployed but say they want to work.

“That’s the lowest ratio of unemployed people to job openings we’ve ever seen and that is contributing to unprecedented tightness in the labor market,” said Julia Pollak, chief economist for ZipRecruiter.

On Wednesday, the Labor Department will release its own survey of October job openings and turnover in the labor market. These government figures lag behind the more closely watched monthly jobs report and private-sector data by about a month. The rate at which people are quitting jobs has also been at record levels in recent months.

The share of the working-age population that is either employed or seeking employment, known as the labor-force participation rate, rose slightly last month, but not enough to keep employers from having to compete for workers. The November labor-force participation rate was 61.8%, still below the 63.4% rate in January 2020 ahead of the pandemic. The unemployment rate dropped to 4.2% last month, from 4.6%, as more people entered the workforce.

The shift in labor participation came as improved employment opportunities, waning Covid-19 worries and lower levels of government support drew people into the labor force last month, economists say. Savings built up during the height of the pandemic may also be dwindling, leading people to again seek work, they add.

The Omicron variant of Covid-19 is a looming threat and could affect the jobs market if it causes a deterioration in public health conditions and leads workers to leave the labor force or further delay their return.

The American workforce is rapidly changing. In August, 4.3 million workers quit their jobs, part of what many are calling “the Great Resignation.” Here’s a look into where the workers are going and why. Photo illustration: Liz Ornitz/WSJ

The rate at which Americans were quitting jobs in October is expected to remain near recent record highs, with workers leaving jobs more than four million times each month.

Workers are quitting jobs for higher wages in other positions, more flexibility working conditions and better benefits. Quits are particularly high in sectors with faster wage growth, such as leisure and hospitality and transportation and logistics jobs.

“Low-wage sectors are clearly having trouble attracting workers,” Dean Baker, senior economist for the Center for Economic and Policy Research, said in an analysis of last week’s jobs report.

With the imbalances in the labor market persisting and favoring workers, the quits rate could rise even further in the coming months.

“They may be even more eager to start something new on Jan. 1,” Ms. Pollak said. “One of the most popular New Year’s resolutions is ‘get a new job.’”