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U.S. job openings are surging, but hiring plods along

 
Published Sept. 10, 2015

WASHINGTON — U.S. job openings soared 8 percent in July to 5.75 million, the most since records began in 2000, the Labor Department said Wednesday.

Meanwhile, total hiring slipped to just below 5 million from nearly 5.2 million in June, suggesting that many businesses are having trouble finding people with the skills they need.

How quickly businesses fill their open jobs can have a big impact on hiring and wages.

Some economists say that a mismatch between the skills of many of the unemployed and the skills needed by expanding companies is a big reason that openings are rising more quickly than actual hiring. Openings are up 22 percent in the past year, while hiring has declined.

In the past 12 months, average hourly pay has increased just 2.2 percent, up from a 2 percent pace in July. But that is below the 3.5 to 4 percent that is typical in a healthy economy.

More openings could contribute to a decision by the Federal Reserve next week to raise interest rates for the first time in nine years. The Fed has held the short-term rate it controls at nearly zero in an effort to encourage more borrowing and spending.

But other data from the job openings report could point in the other direction. The number of people who quit their jobs remained stuck at 2.7 million. More quitting would be a good thing because most people quit to take new jobs, usually at higher pay.

Fed Chair Janet Yellen has said that she closely follows the job openings, hiring and quits data.