The tight labor market gives workers renewed confidence in their ability to find a better job, and they are keeping up with record speeds.
About 4 million people left their jobs in April, according to the Labor Department’s Job Openings and Labor Turnover Summary, released this week, with the biggest exits happening in retail; professional and business services; and transport, storage and utilities. Workers who are most likely to stop living live in the South, Midwest and West regions.
“Job seekers have a strong hand in the job market,”
As a result, there are plenty of opportunities for job seekers – a record high of 9.3 million in April – where workers have the upper hand to negotiate higher wages, more consistent hours or better accommodation. Some workers may realize that their current job, or one they picked up during the unemployment crisis, is no longer a good fit and they are able to move on to something better, Bunker adds.
According to the Labor Department, the biggest increases came in vacancies in accommodation and food services; other services (ranging from machine repair to personal care); and manufacture of durable goods. And according to an Actual Analysis of Recent Job Advertisements, employers are increasingly hiring HR jobs to help fill other roles in their business.
Vacancies fell in education services and in mining and logging.
Employers are struggling to fill new roles
But just over 6 million people were actually employed in April, in line with previous months, with the most activity taking place in accommodation and food services and in the federal government. With more openings than people to fill them, “we have settled back into the pre-pandemic labor market when it comes to troubleshooting,” Bunker says.
The best way employers can get graduates in the door is to raise wages, he says.
A recent Indeed analysis found that companies announcing large pay rises saw a temporary bump in job search activity, including Amazon’s April announcement of raising wages and Bank of America’s statement that it would raise its minimum wage to $ 25 by 2025.
While there is no way to know how much a bump in search activity leads to actual hires, it does mean that raising and announcing higher salaries can attract job seekers to apply.
Strong demand for employment can benefit workers
Bunkers predict that many of the factors holding back job seekers are temporary. Concerns about getting the virus may subside, e.g. When vaccination rates rise and cases fall.
Some job search activity may resume in the fall after federally enhanced unemployment benefits expire in September, although data actually show that the share of national job search activity in four states ending federal user interface on June 12 – Alaska, Iowa, Mississippi and Missouri – actually is lower today than it was at the end of April.
Nationwide, 15.4 million Americans will remain on unemployment benefits from mid-May, including approx. 11.6 million people and their families addicted to pandemic-era programs created by the CARES law.
Bunker also expects more people will be able to return to work in the fall as schools resume personal learning and childcare facilities continue to reopen: “Many of these temporary constraints on labor supply may disappear and in the fall could see a other employment environment. “
For job seekers in the market, whether they’re quitting working better or resuming the workforce, Bunker suggests that graduates take advantage of today’s tight labor market: “If you can fluctuate, this is the best time to do so.”
If you have recently quit your job for a better one with higher pay, the ability to work remotely or in another field and would like to share your story, email job reporter Jennifer Liu at email@example.com.
Check: ‘I put my whole life on hold’: How workers struggle with Covid burnout
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