On Wednesday, the US Labour Department’s closely monitored JOLTS report or Job Openings and Labour Turnover Survey, had unenveloped that the US job openings had perked up to a new record in May, but rehiring had faltered, illustrating a growing uncertainty lurking around the corner about the US economy’s pace of recovery given a persistent labour shortage despite a relaxation in pandemic-led restrictions.
Meanwhile, referring to a rancorous cloud looming large over a languid US labour market, an economist at Capital Economics, Andrew Hunter said, “The latest survey data suggest that labor shortages remain acute. ” In factuality, latest JOLTS report, a gauge of labour demand, came forth just days after the Labour Department had said that US employment had soared to a fresh 10-month peak in June, stoking optimisms of a gradual recovery in the US labour market.
On top of that, a stall in rehiring spree in May could be stemmed off an unprecedented downturn in demands of US-borne core capital goods in recent months, however, a robust uptick in domestic demands followed by a vigorous reopening of the economy appeared to have eclipsed the lag in new orders for US-made core capital goods, encouraging the analysts to stay cautiously optimistic over a healing US labour market.
Nonetheless, a shortage in raw materials alongside wide-spread supply chain disruptions would continue to add further glooms deeper into the year, fretted analysts.
US Job openings rise to new record
Concomitantly, according to the US Labour Department’s JOLTS report released earlier on Wednesday, job openings edged up by 16,000 to a record 9.2 million as of May 31, while hiring slid marginally to 5.9 million in May from a reading of 6.0 million in April.