Daily Picks Thursday: Job Openings Now Outnumber the Jobless
July 5, 2018
2 Min Read
American Job Openings Now Outnumber the Jobless
- For the first time since such record-keeping began in 2000, the number of available positions exceeded the number of job seekers.
- U.S. job openings rose to a seasonally adjusted 6.7 million at the end of April, a record high, and more than the 6.3 million Americans who were unemployed during the month.
- The jobless rate ticked down further in May to a seasonally adjusted 3.8%, the lowest since April 2000.
- If businesses can’t find workers to meet the demand for their products, they can’t help the economy grow.
- Higher wages to attract workers will raise costs and businesses would cut profit margins if higher prices can’t be passed on to customers.
- If prices and wages are higher, that stokes stronger inflation, which already has been accelerating in recent months.
- For the Federal Reserve this may be a sign the economy is overheating, raising the need to lift interest rates more aggressively than the slow, moderate path they have signalled.
Here's Where China Stands as Tariff Hour Nears
- Tomorrow the U.S are due to implement $34 billion in tariffs on Chinese goods.
- China responded with a statement saying it would fight back with “equal scale, equal intensity.”
- Beijing is targeting soybeans, corn, wheat, rice, sorghum, beef, pork, poultry, fish, diary products, nuts and vegetables, and autos in its first round of counter measures.
Blame 'superstar' tech firms for slow wage growth: OECD
- Though unemployment in most OECD countries has returned to pre-crisis levels, wage growth has not.
- Much of the productivity growth has been generated by a small of number of innovative firms that invest massively in technology but employ few workers compared to other more traditional companies.
- For now there was no evidence that emergence of superstar firms was creating anti-competitive forces, but the OECD also did not rule that out as a future danger.
- The way to help workers would be to give them better skills an education while collective bargaining between workers’ reps and employers could help reduce wage inequality.