U.S. Job Openings Reach 5-Month High

Job openings in the United States reached 11 million in the last month of 2022, growing by close to 575,000 positions, a jump that surprised many experts, to reach a five-month high.

For every unemployed person in the United States, there were nearly 2 job openings, according to the latest Labor Department report. In particular, there were more than 400,000 open jobs in the food services and accommodation industry, which continues to lag its pre-pandemic staffing levels.

The labor market remains tight; however, the U.S. central bank still went ahead with a 25-basis-point increase of its policy rate, vowing more but smaller ongoing increases for borrowers. Wage growth was slow in the fourth quarter but could remain solid due to this latest report on job openings.

Other industries with notable openings include retail trade and construction. While some believe the latest report was a signal of a seasonal blip, others expect a challenging labor market for months to come.

The 2023 Outlook for Labor Supply and Demand

As the new year approaches, prognosticators everywhere want to know what trends we can expect to see in the job and labor market going forward. Will 2023 bring more supply and less demand? Or will it be home to more challenges and shortages of skilled workers?

Experts are once again predicting that businesses will face greater demand for workers than available talent. This may lead to more out-of-town or overseas hires, remote work and outsourcing, and even reduction in products and services offered.

Likewise, more companies will focus on developing the talent they already have—teaching new skills to current workers—to bridge the tight labor market. Training and talent development can help cover current gaps and increase worker productivity and satisfaction.

In addition, companies everywhere must focus on outreach and branding to continue to attract the best and brightest talent. Innovation is and will be the name of the game in the 2023 job market.

While it is never easy to precisely pinpoint what a new year and a new season will bring, most labor market experts today anticipate another lean year where businesses are short on workers and long on need. Companies that can creatively weather the storm will rise to the top.