Job Opening Easing as Coronavirus Cases Fall

After hitting a record high at the end of last year, February's employment potential fell slightly for the second straight month, a sign that employers are able to fill open positions as the pandemic eases.

Job openings are easing as the number of new coronavirus cases continues to fall down. Raising inflation and economic uncertainty surrounding the invasion of Ukraine are also factors incentivising people to return to work.

The Labour Department also reported a seasonally adjusted 11.3 billion job openings in February, a decrease from the previous month’s level and slightly below the 11.4 million records of December. The number of job quits rose slightly to 4.4 million but held below November’s record high while hiring increased from the previous month. 

Nick Bunker, an economist said vaccination still makes people feel more comfortable going to bars and restaurants, so job growth is still strong in areas such as leisure and hospitality, but the pace of job growth is slowing. 

Consumer inflation expectations can affect wages, but high inflation can reduce demand for certain commodities and services, as well as labour demand for some employers. Patricia Buckley, managing director for economics at Deloitte said.

The Conference Board’s consumer-confidence index said that consumers grew more pessimistic about their expectations for the future in March due to the rising prices and the Russia-Ukraine war, but strong employment growth helped boost overall consumer confidence.