September 8, 2010
According to The Hill, the Labor Department's Job Openings and Labor Turnover survey showed that the total number of U.S. job openings increased slightly in July.
Total job openings increased by 178,000 to 3.04 million. Although month-to-month job opening numbers seem minute, the number of openings since July 2009 has increased by 704,000, or 30 percent. Reuters pointed out that the ratio of unemployed people to job openings in July 2010 was 4.8 to 1. While this is an improvement over June's ratio of 5.1 to 1, it is far from the 1.5 to 1 ratio in the first half of 2007 when the recession began.
Bloomberg reported the survey showed that total firings, which excluded retirements and voluntary separations, fell to 2.12 million. The layoff and discharge rate remained at a seven-month high of 1.6 percent, announced Reuters.
Unfortunately, private hiring has shown few signs of picking up. Although the August jobs report showed that private payrolls added 67,000 jobs, many private sector businesses have stalled. "We'll see a very gradual reduction in the unemployment rate," said Ken Mayland, president of ClearView Economics LLC. "Private hiring is still on the anemic side."
According to Bloomberg, President Obama plans to propose expanding tax cuts for businesses and boosting federal spending on the national transportation system to help strengthen the economy. On September 6, the President began some of the initiatives by calling for $50 billion to start repairing roads, railways and runways and to modernize the air-traffic control system.
Some hiring is also expected as export-oriented companies prepare to handle an increase in sales in developing markets. Illinois-based Caterpillar Inc., the world's leading manufacturer of construction and mining equipment, for example, said last month that it may add as many as 9,000 workers worldwide.
However, The Hill pointed out that until job creation significantly picks up, consumer spending and economic recovery will be slow.
Compiled by CityTownInfo.com Staff
"Job Openings in U.S. Rose in July by 178,000 to 3.04 Million," bloomberg.com, September 8, 2010, Shobhana Chandra
"Job openings increased in July," thehill.com, September 8, 2010, Vicki Needham
"Job openings rise in July, prior month revised down," reuters.com, September 8, 2010