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Why is hiring so much lower than new job openings?

Wehrwolfen

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By Jazz Shaw
August 17, 2013


Both Dr. James Joyner and Bloomberg’s Peter Orszag are looking into a rather puzzling pair of statistics from the labor market this week. Posted job openings around the country are up roughly 50%, but new hires have only risen by 5%. What can account for the disparity in these numbers? It would seem that if companies are posting that many more openings, surely hiring should be on the rise in comparable numbers, and yet it’s not happening.

Orszag:
To get some sense of how significant this is, consider that if, since June 2010, hiring had risen a third as much as advertised jobs have (rather than only a 10th), and nothing else were different, job creation would be roughly 500,000 higher each month, and the unemployment rate would already be back to normal levels.

So what explains the yawning gap between jobs open and jobs filled?

Joyner:
Orszag floats four theories that have been offered:
There’s a mismatch between the skills needed and those available on the market Employers are offering wages too low to attract applicants Jobs are mostly being filled with internal candidates Firms have reduced their “recruiting intensity,” and just aren’t that excited to fill openings

He argues pretty good reasons to discount any of these as likely explanations for much of the gap. He concludes,

Regardless of the true explanation, it’s still good news that more jobs are being advertised. That wouldn’t be happening if the economic outlook were entirely bleak.

But, if nobody’s hiring, the economic outlook is pretty damned bleak for the unemployed and underemployed.

As with most cases when we attempt to analyze a trend taking place involving tens of millions of people, I suspect the “answer” isn’t just one driving phenomenon, but rather a combination of factors.....


(Excerpt)
Read more:
Why is hiring so much lower than new job openings? « Hot Air

Guess that 99 weeks of Unemployment Checks and SNAP is too enticing.
 

Fisher

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My boss keeps advertising to find someone to replace me with who will work cheaper, but so far no luck :shrug: (That is always a huge danger when you are self employed :notlook: )
 

ttwtt78640

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By Jazz Shaw
August 17, 2013


Both Dr. James Joyner and Bloomberg’s Peter Orszag are looking into a rather puzzling pair of statistics from the labor market this week. Posted job openings around the country are up roughly 50%, but new hires have only risen by 5%. What can account for the disparity in these numbers? It would seem that if companies are posting that many more openings, surely hiring should be on the rise in comparable numbers, and yet it’s not happening.

Orszag:
To get some sense of how significant this is, consider that if, since June 2010, hiring had risen a third as much as advertised jobs have (rather than only a 10th), and nothing else were different, job creation would be roughly 500,000 higher each month, and the unemployment rate would already be back to normal levels.

So what explains the yawning gap between jobs open and jobs filled?

Joyner:
Orszag floats four theories that have been offered:
There’s a mismatch between the skills needed and those available on the market Employers are offering wages too low to attract applicants Jobs are mostly being filled with internal candidates Firms have reduced their “recruiting intensity,” and just aren’t that excited to fill openings

He argues pretty good reasons to discount any of these as likely explanations for much of the gap. He concludes,

Regardless of the true explanation, it’s still good news that more jobs are being advertised. That wouldn’t be happening if the economic outlook were entirely bleak.

But, if nobody’s hiring, the economic outlook is pretty damned bleak for the unemployed and underemployed.

As with most cases when we attempt to analyze a trend taking place involving tens of millions of people, I suspect the “answer” isn’t just one driving phenomenon, but rather a combination of factors.....


(Excerpt)
Read more:
Why is hiring so much lower than new job openings? « Hot Air

Guess that 99 weeks of Unemployment Checks and SNAP is too enticing.
Wanted: Fence Installer. Applicant must supply their own transportation and tools (to sweat their ass off in 100 degree weather to install fencing) - pay starts at $8.00/hr, 2 week paid vacation benefits after one year. 2-3 years experience required, bilingual in English/Spanish perferred and references are required.

Gosh, I wonder why nobody (legal) is willing to take that job?
 

JC Callender

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Why should someone go to work at a job they don't like if they don't have to, I think that's what it all boils down to. There are so many government subsidies and programs to avoid work nowadays that I would assume they're the biggest factor in keeping people from filling these jobs.
 

CalGun

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A number of mid size employers are seeking 29 hr employees. Even with obamafarce held off a year why set up a future cut back. I've also seen jobs that use to be $15-20 hr offered up and 9-12 an hour with plenty of takers.
 

Captain Adverse

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Wanted: Fence Installer. Applicant must supply their own transportation and tools (to sweat their ass off in 100 degree weather to install fencing) - pay starts at $8.00/hr, 2 week paid vacation benefits after one year. 2-3 years experience required, bilingual in English/Spanish perferred and references are required.

Gosh, I wonder why nobody (legal) is willing to take that job?
Well...I might move to Texas and take the job if it came with a cheap trailer I can rent in your trailer park and a Wal-Mart I can buy all my crap from nearby.... jk ;)
 
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Fisher

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Wanted: Fence Installer. Applicant must supply their own transportation and tools (to sweat their ass off in 100 degree weather to install fencing) - pay starts at $8.00/hr, 2 week paid vacation benefits after one year. 2-3 years experience required, bilingual in English/Spanish perferred and references are required.

Gosh, I wonder why nobody (legal) is willing to take that job?
I would if I needed the money (and then I will steal all their contacts and employees and start my own business installing fences and become the Fencing King of the Mid-Atlantic)
 

Wehrwolfen

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Everyone wants to be paid top dollar, but few are willing to do an honest day's work.
 

Captain Adverse

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Why should someone go to work at a job they don't like if they don't have to, I think that's what it all boils down to. There are so many government subsidies and programs to avoid work nowadays that I would assume they're the biggest factor in keeping people from filling these jobs.
That is such crap. There are only 4 million people on welfare. There are nearly 12 million unemployed actively seeking work among 3 million available jobs openings, and another nearly 3 million listed as "marginally attached" persons who have given up in frustration and turned to "other" forms of income or homelessness. There are 47 million citizens on food stamps, 43 million NOT on welfare...many of whom are working at part-time jobs, temporary worker contracts, or full-time low paying jobs. The rest are on disability or social security.

This myth of masses of welfare mothers with 10 kids sucking off the government tit is getting a bit annoying.
 
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JC Callender

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Sorry, but Michigan was one of the hardest hit states during the recession and you could always get at least a temp job. Btw, are there only 4 million people total on government assistance or receiving any kind of government subsidy?

That is such crap. There are only 4 million people on welfare. There are nearly 12 million unemployed actively seeking work among 3 million available jobs openings, and another nearly 3 million listed as "marginally attached" persons who have given up in frustration and turned to "other" forms of income or homelessness. There are 47 million citizens on food stamps, 43 million NOT on welfare...many of whom are working at part-time jobs, temporay worker contracts, or full-time low paying jobs. The rest are on disability or social security.

This myth of masses of welfare mothers with 10 kids sucking off the government tit is getting a bit annoying.
 

Captain Adverse

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Sorry, but Michigan was one of the hardest hit states during the recession and you could always get at least a temp job. Btw, are there only 4 million people total on government assistance or receiving any kind of government subsidy?
Always get a temp job? Really? You mean a $10.00 to $14.00 per hour job for whatever hours the employer wants, and can be let go at any time with no notice? That kind of temp job? Or do you mean up to a six month contract job for the same rate of pay but absolutely no benefits and still work hours and days at the whim of the employer? That kind? Yeah people still take those jobs, and employers still demand high levels of experience and skill levels for them too. Otherwise you get the minimum wage to $9.00 per hour temp jobs at Wal-Mart, Target, Costco, etc. Same conditions applying as for the "higher" paid ones. LOL

So now we have to become a migrant office worker pool, like migrant farm workers, eh?
 

JC Callender

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What would you rather have happen, a person take a $10/hr. job, or someone else pay them $10/hr to sit at home? What choice do you think would be best for our country overall?

Always get a temp job? Really? You mean a $10.00 to $14.00 per hour job for whatever hours the employer wants, and can be let go at any time with no notice? That kind of temp job? Or do you mean up to a six month contract job for the same rate of pay but absolutely no benefits and still work hours and days at the whim of the employer? That kind? Yeah people still take those jobs, and employers still demand high levels of experience and skill levels for them too. Otherwise you get the minimum wage to $9.00 per hour temp jobs at Wal-Mart, Target, Costco, etc. Same conditions applying as for the "higher" paid ones. LOL

So now we have to become a migrant office worker pool, like migrant farm workers, eh?
 

Fisher

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Everyone wants to be paid top dollar, but few are willing to do an honest day's work.
I am actually an odd-bird in that regard. I actually prefer doing menial, back-breaking, suffering through the weather labor. I would do it still if I could make a living at it. It secretly disappoints me that I no longer have calloused hands.
 

Captain Adverse

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What would you rather have happen, a person take a $10/hr. job, or someone else pay them $10/hr to sit at home? What choice do you think would be best for our country overall?
Who is paying them $10/hr to sit at home? What, you have one or two acquaintances who fall into this category? What were their prior jobs? What skills do they have? How often do you think they are going to get called for work? Are you a "consultant" at a temporary agency? How much temp work do you personally know about they could fill?

Seriously, what is your evidence that all these jobs are available, especially in the depressed Wisconsin economy?
 
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JC Callender

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The taxpayers are paying them to stay at home. You need to give up this idea of a utopia. When the economy is poor, people aren't going to get prime jobs with great pay. You have to take what is out there or accept support from elsewhere, like the government. Taking a poor paying job is preferable to accepting government assistance, and is better for our economy.

As far as evidence that these jobs are available, go to Career Builder.com and see for yourself.

Who is paying them $10/hr to sit at home? What, you have one or two acquaintances who fall into this category? What were their prior jobs? What skills do they have? How often do you think they are going to get called for work? Are you a "consultant" at a temporary agency? How much temp work do you personally know about they could fill?

Seriously, what is your evidence that all these jobs are available, especially in the depressed Wisconsin economy?
 

Carjosse

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There are plenty of openings for accountants, always, and it pays very well. The problem is most people don't want to be an accountant or go through the process (certification, work experience, equivalence, etc.) to be one.
 

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The taxpayers are paying them to stay at home. You need to give up this idea of a utopia. When the economy is poor, people aren't going to get prime jobs with great pay. You have to take what is out there or accept support from elsewhere, like the government. Taking a poor paying job is preferable to accepting government assistance, and is better for our economy.

As far as evidence that these jobs are available, go to Career Builder.com and see for yourself.
Are you saying that the vast majority of the 4 million welfare recipients reside in Michigan?

As for "CareerBuilder.com? Millions of people submit resumes online all the time to that, Monster.com, and all sorts of other "job placement" services. Many major temporary agencies also solicit online resumes. So what? Few job responses accrue. They get to see all the applications, pick the cream from all the millions, and ignore the rest. Big Deal, business as usual except now they can keep it completely impersonal online.

I'm looking for facts...gimme something that shows most people are simply sucking on the government teat.
 

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I asked you before if there are any other subsidies besides welfare and you dodged it. There are people on food stamps (46,700,000), disability (9 million + dependents), people who get thousands at tax time from EIC and other tax breaks, and many other programs. That's not counting the millions on unemployment.



Are you saying that the vast majority of the 4 million welfare recipients reside in Michigan?

As for "CareerBuilder.com? Millions of people submit resumes online all the time to that, Monster.com, and all sorts of other "job placement" services. Many major temporary agencies also solicit online resumes. So what? Few job responses accrue. They get to see all the applications, pick the cream from all the millions, and ignore the rest. Big Deal, business as usual except now they can keep it completely impersonal online.

I'm looking for facts...gimme something that shows most people are simply sucking on the government teat.
 

Wehrwolfen

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More Than 100 Million Americans Are On Welfare - The American …

More Than 100 Million Americans Are On Welfare

More Than 100 Million Americans Are On Welfare. ... more than 61 million Americans receive some form ... ‘The Rats Are Jumping Off This Sinking Ship’ . 8-14 ...

Someone should get their numbers right.
 

Captain Adverse

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I asked you before if there are any other subsidies besides welfare and you dodged it. There are people on food stamps (46,700,000), disability (9 million + dependents), people who get thousands at tax time from EIC and other tax breaks, and many other programs. That's not counting the millions on unemployment.
DUDE!!! I TOLD YOU about the 47 million people on food stamps....

That is such crap. There are only 4 million people on welfare. There are nearly 12 million unemployed actively seeking work among 3 million available jobs openings, and another nearly 3 million listed as "marginally attached" persons who have given up in frustration and turned to "other" forms of income or homelessness. There are 47 million citizens on food stamps, 43 million NOT on welfare...many of whom are working at part-time jobs, temporary worker contracts, or full-time low paying jobs. The rest are on disability or social security.
I also pointed out that most of them have jobs, which pay crap wages. That's 43 Million people at least 40 million of whom are WORKING POOR!!!!! Doing their best to make ends meet.

There are only around 3 million job openings in the ENTIRE USA. With 11.5 to 15 million people seeking them depending on which figures you are willing to accept. Using the lowest figures, even if all jobs were filled today, there would still be at least 7 million people out of work who WANT to work.

What do you want?
 

Captain Adverse

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More Than 100 Million Americans Are On Welfare - The American …

More Than 100 Million Americans Are On Welfare

More Than 100 Million Americans Are On Welfare. ... more than 61 million Americans receive some form ... ‘The Rats Are Jumping Off This Sinking Ship’ . 8-14 ...

Someone should get their numbers right.
The bulk of that is medicaid and food stamps from your own source:

Food stamps and Medicaid make up a large--and growing--chunk of the more than 100 million recipients. "Among the major means tested welfare programs, since 2000 Medicaid has increased from 34 million people to 54 million in 2011 and the Supplemental Nutrition Assistance Program (SNAP, or food stamps) from 17 million to 45 million in 2011," says the Senate Budget Committee.
99 Million of the "106 million" on those two programs alone. Count 4 million welfare recipients, that leaves 3 million on 77 other programs; most likely children and the disabled. This also means the figures must be skewed because most welfare recipients are also on Food Stamps.
 

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There were 3.9 million job openings at the end of June according to: Job Openings and Labor Turnover Summary

There are tons of subsidies including the astronomical number or 47,000,000 on food stamps that make it so much easier to sit at home rather than take a job. And how do you know that these unemployed people want to work or are trying their best? They certainly don't want it bad enough if they won't accept an entry level position.

DUDE!!! I TOLD YOU about the 47 million people on food stamps....



I also pointed out that most of them have jobs, which pay crap wages. That's 43 Million people at least 40 million of whom are WORKING POOR!!!!! Doing their best to make ends meet.

There are only around 3 million job openings in the ENTIRE USA. With 11.5 to 15 million people seeking them depending on which figures you are willing to accept. Using the lowest figures, even if all jobs were filled today, there would still be at least 7 million people out of work who WANT to work.

What do you want?
 

Captain Adverse

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There were 3.9 million job openings at the end of June according to: Job Openings and Labor Turnover Summary

There are tons of subsidies including the astronomical number or 47,000,000 on food stamps that make it so much easier to sit at home rather than take a job. And how do you know that these unemployed people want to work or are trying their best? They certainly don't want it bad enough if they won't accept an entry level position.
OMG! 3.9 MILLION! Wow that certainly makes a big difference...NOT! Again, using the lowest unemployment figures there would STILL BE 7 MILLION PEOPLE OUT OF WORK if every available job were filled today. Furthermore, those jobs you list include part-time, temp, and low paying full-time among that number.

This is a buyers market. Employers are buying labor CHEAP, job seekers are selling cheap due to massive competition. Supply and demand.

Food stamps don't pay rent!! They don't pay utilities! They don't pay for day care or transportation! The don't pay for clothes! They only pay for FOOD! Have you even checked on how to qualify? You may not have more than $2,000 in resources any month you apply for them. That's not $2,000 in cash, its all resources available to you excluding a home or land. If there is someone in your household who is 60 or older or disabled it goes up to $3,000 in resources.

Do you even bother to research before you make your claims?
 
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JC Callender

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It is a big difference, you were almost 25% off. And assuming that every last one of the remaining 7 million would want to work for less than $50,000 a year is a little naive. Nevertheless, the 3.9 million jobs could bring unemployment down over 30%.

OMG! 3.9 MILLION! Wow that certainly makes a big difference...NOT! Again, using the lowest unemployment figures there would STILL BE 7 MILLION PEOPLE OUT OF WORK if every available job were filled today. Furthermore, those jobs you list include part-time, temp, and low paying full-time among that number.

This is a buyers market. Employers are buying labor CHEAP, job seekers are selling cheap due to massive competition. Supply and demand.
 

Captain Adverse

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It is a big difference, you were almost 25% off. And assuming that every last one of the remaining 7 million would want to work for less than $50,000 a year is a little naive. Nevertheless, the 3.9 million jobs could bring unemployment down over 30%.
You have no point. You can pick nits all you want, you have no point. There are no massive numbers of people who voluntarily refuse to look for work because they are able to live off the government. If you took all those people off welfare and all the other programs you complain about, how is your little figure of "3.9 million jobs" going to cover millions of people who's current jobs don't allow them to feed their families, or are current welfare recipients. What about all the elderly and disabled who will need work to cover their medicaid expenses and food costs. This on top of the existing 15 million unemployed.

Do we have enough living wage jobs for at least 60 million people????? YOU HAVE NO POINT!
 
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