US Labor Demand Remains Historically High with 1.7 Job Openings for Every Unemployed Person
Although the number of job openings in the United States dropped by more than one million in August, showing the labor market is slowly coming off the boil, the labor demand remains historically high.
According to data presented by Augusta Free Press, despite the latest job openings drop, there are still 1.7 unfilled positions for every unemployed person in the United States.
The US Unemployment Level Dropped by 25% YoY, Job Openings Down by 2% YoY
According to Statista and Bureau of Labor Statistics data, job openings in the United States fell sharply in August as the labor market began to cool. The number of opened jobs stood at 10.1 million that month, almost a million less than in July.
The latest data showed the US unemployment level is also downsizing, with the total number of unemployed persons standing at 5.8 million in September, 210,000 less than a month before. These figures mean there are still more than 1.7 unfilled positions for every unemployed person in the United States. Although still high, that is much less than the ratio seen in the months earlier this year.
In March, the US Bureau of Labor Statistics reported 11.86 million job openings and 5.95 million unemployed persons, meaning there were almost two unfilled positions for every unemployed person.
By June, the ratio fell to 1.86, with 5.91 million unemployed persons and 11.04 million opened jobs. However, the figure spiked the following month as job openings rose to 11.17 million. In contrast, the number of unemployed persons dropped to 5.67 million, bringing the ratio to 1.97, the second-highest this year.
Statistics show the US unemployment level dropped by 25% year-over-year, falling from 7.67 million to 5.8 million. Total job openings were down by 2% in a year, decreasing from 10.4 million to 10.1 million. The unemployment rate stood at 3.5% in September, down from 4.8% in the same month a year ago.
Unemployment Continues to Fall Across the US and Europe
Analyzed by states, New York has the highest unemployed rate, 4.7% as of August, down from 6.6% in the same month last year. Illinois ranked in second place with 4.5%, 1.5% less than a year ago. The states of New Mexico and Nevada follow with a 4.4% unemployment rate each.
Like the US market, Europe has also seen its unemployment level fall this year. According to Eurostat data, the euro area seasonally-adjusted unemployment rate was 6.6% in August, stable compared with July and down from 7.5 % in August 2021. The number of unemployed persons stood at 12.9 million in August, almost 1.7 million less than in the same month a year ago.
Statistics show the Czech Republic had the lowest unemployment rate of all European countries, with just 2.3% in August. Spain, which has an unemployment rate of 12.6%, is on the other side of the EU scale. Greece follows with 11.4%.