Report: Job Openings Equal Unemployed Workers
UNDATED -- There is now one open job available for every unemployed American. That's according to a federal labor report released Tuesday. In March, employers advertised 6.55 million open jobs.
So is the thought of having an unemployment rate of zero a reality? St. Cloud State University Economics Professor King Banaian says that's not likely.
The fact that the people who are unemployed may not have the skills for the jobs that employers are advertising is probably the number one reason. Number two would be the jobs are in places different than where they unemployed live.
And, Banaian says there's is also a certain percentage of people who don't want to work at the jobs and wages being offered.
Banaian says here in the St. Cloud metro area for the past six months we've also been pretty close to the one-to-one job ratio as well.
Banaian says while wage increases have lagged behind job openings so far, he expects raises to be in store for many workers.
I do think that the rate of increase in wages has picked up in the last year, and I think they will do so even more if this condition continues.
Banaian says most job openings are in the skilled labor positions like construction.
He says locally businesses say their number one concern right now is the difficulty finding workers, passing taxes and regulations.
There have been some high profile stories of job losses in the St. Cloud metro area in the news lately, from Capital One to Herberger's to Electrolux. While those jobs are scheduled to be phased out over the next several months, Banaian says he doesn't expect a dramatic rise in the local unemployment rate.
I don't think we'll see some massive rise in the unemployment rate, because we still have businesses clamoring for workers. And, some of them even willing to invest in getting them the job skills they need to transition to the new position.
Banaian says he expects several manufacturers are anxious to talk to the skilled labor workers at Electrolux, which isn't scheduled to close until the end of next year.