Job openings in the United States are at an all-time low not seen since the recession of 2009, showing a decrease in available employment that has analysts wondering what signal this sends for the overall economy.
While jobs have been added to the economy, year over year job openings are down 14% from last year and have sunk to levels not previously seen since the recession in the late 2000's. The data released by the Department of Labor shows that job vacancies have dropped to 6.4 from 6.8 million in November, Wall Street forecasts had shot for 6.9 million. The hiring rate also dropped .3%. The trend continued in January, with a 3.1% decrease in vacant positions.
Analysts seemed mixed on what the drop means for the economy. There is some positive data, such as new jobs being added to the economy, but whether these figures offset the decrease in vacancies remains to be seen. An analyst with Glassdoor pointed out that the Department of Labor's figures does not yet incorporate changes in job vacancies that come as a result of more recent developments, such as the economic hiccups stemming from the Coronavirus outbreak. An analyst at JP Morgan (NYSE: JPM) was more optimistic, stating that the numbers are closer to the high mark near the end of the recession rather than the dismal vacancy figures from the height of the economic downturn. The analyst was quick to point out, however, that while the numbers aren't as awful as they may seem, it may be indicative of a potential slowdown in job growth. An analyst at Indeed noted that there are still more vacancies than unemployed workers.
In general, the data may be indicative of a potential slowdown in the job market, but to what extent such a slowdown may reach is hard to predict. The decrease has erased 1.1 million job openings since last year, and while vacancies continued to decrease through January, actual hiring figures are still somewhat strong. Unemployment also remains low and has reached a fifty-year low. The decrease in vacancies seems to be concentrated in several industries, notably manufacturing, which has been hit hard by the U.S-China Trade War and may be a major contributor to the overall drop in vacancies nationwide.