CHART OF THE DAY: More open jobs today than since... well, since ever
SteveIf the title of this post sounds familiar, well it should because I ran a post with this exact same title back in June. At that point the chart that accompanied the post showed that open jobs in the USA as of the end of April sat at 5.4 million, at that time the most that the Bureau of Labor Statistics JOLTS report had ever reported.
Fast forward a couple of months and we have yet another record high number of job openings in the USA as reported in the latest JOLTS report, climbing to 5.8 million as of end of July. Check the chart below and then, as you have continually demanded, some FREE comments from me after the numbers.
Some quick takes....
1. Wage pressure has to, has to be coming even more than in some of the pockets that we have already seen increasing wages. With this many open jobs, and the labor force participation rate still pretty low by historical standards, rising wages have to be one of the options employers turn to in hopes of filling some of these jobs. You can push 'great culture' and 'summer hours on Fridays' as much as you want, but at the end of the day many, many candidates have many, many more options than ever.
2. As I wrote last time I showed this chart, even increasing wages might not be enough in a candidate-scarce market. Are you still telling 37-year-old new hires they start at 10 days vacation, accrued in 4-hour increments every two weeks? Are you still making outside sales people show up at some central office every day when they really have no need to do that? Are you still making and enforcing rules that anyone with options will not tolerate for any longer than they need to?
3. It could be time when you (finally) push hard for a strategic increase in your internal development initiatives. Certainly some component of the record high in job openings stems from organizations that just can't find people with the right set of skills and experiences. But since the market continues to send messages that it will not suddenly or miraculously begin producing more of these ideal candidates, you have to figure out some other means of filling these gaps. Maybe you have to get more creative with apprenticeships, college and vocational partnerships, and/or upskilling your own employees to fill the roles that the market can't seem to provide.
I love this chart. I love it when people have options, have opportunity, and hopefully, some leverage in the typically employer-driven recruiting game.
Good luck out there.
