A greater share of America’s job hunters received more than one
employment option this summer than got single offers, indicating
lingering tightness in the labor market and upbeat firms despite recent
recession concerns.
Almost 11% of job-seekers received 2 or more offers compared to 10.1%
who only received a single offer. The number receiving three offers or
more was the highest since records started in 2014, according to data
from the Federal Reserve Bank of New York.
Job hunters remain optimistic. The number who expect to receive
multiple offers though November edged up to 24.1% from 22.8% in July
2018. Further, 24.5% of individuals reported searching for a job in the
past four weeks, up from 22.4% in July 2018
What’s more, with the
jobless rate remaining near a five-decade low and more labor market
turnover, companies are finding they have little choice but to boost
pay.
“The average full-time offer wage received in the past four
months also slightly increased from $52,590 in July 2018 to $54,943,”
according to Fed.
The amount of money needed to entice a worker is rising as well.
“The
average reservation wage -- the lowest wage respondents would be
willing to accept for a new job -- continued its rise from $57,964 in
July 2017 and $60,196 in July 2018 to $62,194 in July 2019. The increase
was most pronounced for younger and higher-income respondents,”
according to the report.
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| © Bloomberg Job Transitions |
These salary expectations are prompting more people to enter the
labor force and encouraging already-employed individuals to switch jobs.
The average likelihood of moving to a new employer within four months
stood at 11.4% in July, up more than a percentage point from last year.
The pickup was most notable among workers younger than 45, those earning
less than $60,000 a year and women.
The Kansas City Fed’s latest
survey of manufacturers highlighted sustained labor market tightness
with comments from some of the respondents:
“Finding quality
manufacturing labor has been a challenge. We’ve invested in equipment to
use less labor moving forward.”“Our biggest challenge is getting and
retaining employees.”“We are currently struggling to find good young
workers to replace our aging workforce.”
