January 28, 2015

US jobs taking longer to fill

Job vacancies in the US are taking longer to fill, causing analysts to suggest that the nation's economy may be tightening.

A report by job advertiser Indeed showed that 57% of vacancies posted on the site between August and October 2014 took over 30 days to fill. This marks a 0.8% rise from the same period in 2013.

The hospitality and manufacturing industries had the highest rates of unfilled jobs which, the report suggests, is a result of employment gains in those industries which has increased competition for skilled recruits.

The jobs advertised on the Indeed website account for 47% of all jobs available in the US.

Senior Vice President of Indeed Paul D’Arcy commented: "When it takes longer for employers to fill jobs it should put pressure on wages to rise in order to attract quality candidates faster. If employers are unwilling to offer higher wages, this could in part explain longer vacancy times."

R. Jason Faberman writes about the relationship between recruitment and labor market fluctuations. He discusses how recruiting intensity can reflect growth prospects of specific businesses as well as labor market conditions that businesses face. He suggests that policymakers should assess hiring processes to inform effective employment-boosting policies.

Read more here.

Related articles:
Recruiting intensity, by R. Jason Faberman
Tuning unemployment insurance to the business cycle, by Torben M. Andersen