U.S. Job Openings Increase in Latest Hopeful Indicator

[question everything]

NOVEMBER 12, 2009

U.S. Job Openings Increase in Latest Hopeful Indicator

By MARK WHITEHOUSE and SARA MURRAY

U.S. companies are gradually ratcheting up their search for workers, a new Labor Department survey showed, which some economists see as a signal that the steep decline in the job market could be nearing an end. The Labor Department's Job Openings and Labor Turnover Survey found that the number of job openings in the U.S. increased slightly in both August and September, the first two-month rise since early 2007. Hotels, restaurants, education and health care made the largest contributions; even such hard-hit sectors as manufacturing saw a rise.

(snip)

The uptick in openings -- which include newly created or just vacated positions -- comes as other indicators have offered conflicting signals on the direction of what has been the worst job market in decades. On Friday, the government reported that the unemployment rate hit 10.2% in October, and economists believe the rate will remain above prerecession levels through 2019. At the same time, nonfarm payrolls shrank less than in previous months, suggesting the situation is worsening at a slower rate.

Separate reports on small business and extended layoffs Tuesday provided more clues that stabilization could be on the way. The National Federation of Independent Business reported that small-business sentiment improved slightly in October. Over the next three months, 16% said they plan to reduce employment, unchanged from the previous month's survey, and 9% said they plan to add workers, up two percentage points from last month. Meanwhile, the Labor Department reported that the share of companies planning to recall workers laid off for at least 31 days rose to about 33% in the third quarter, from 29% a year earlier. Still, the number of such extended mass layoffs was at its highest point for any third-quarter period since at least 1995.


Economists found reason for optimism in the details of Tuesday's report on job openings. The rate of new hires as a percentage of all employment stayed steady at 3.1% for the second month in a row, suggesting openings are turning into actual employment. Perhaps more important, companies in sectors that tend to move in sync with the broader economy -- such as manufacturing and professional services -- added to their job openings for two straight months.

(snip)

Still, competition for most available jobs is fierce. The number of job seekers for each opening declined slightly in September, but still stood at about six -- more than double the 10-year average. The competition is evident at Country Crossing, a new 375-acre entertainment venue in Dothan, Ala., that is hiring 600 people to staff its three restaurants, RV park and other facilities. A recent three-day job fair to hire 100 restaurant workers drew about 3,000 applicants. "You'd even be surprised at the ages: all the way from 16 to, gosh, 75 years old," said Doug Rainer, director of communications for Country Crossing.

http://online.wsj.com/article/SB125786537456341183.html (subscription)

Printed in The Wall Street Journal, page A11

[PSPS]

1. Sorry, but jobs in "restaurants and RV parks" don't equal a "hopeful indicator."

The competition is evident at Country Crossing, a new 375-acre entertainment venue in Dothan, Ala., that is hiring 600 people to staff its three restaurants, RV park and other facilities. A recent three-day job fair to hire 100 restaurant workers drew about 3,000 applicants. "You'd even be surprised at the ages: all the way from 16 to, gosh, 75 years old," said Doug Rainer, director of communications for Country Crossing.

I doubt these "jobs" allow for much disposable income for things like an occasional vacation, sending a kid to college, buying an occasional new car or washing machine.

[Double T]

2. Fired the 'Living Wage' workers.

Will replace with the 'Working Poor Wage' workers. Progress?