On Wednesday of last week, the Labor Department’s Bureau of Labor Statistics (BLS) reported that there were a record 5.9 million unfilled job openings in America as of the end of July. Unless you are a news junkie like myself, this number may well come as a surprise to you. And the reasons why we have such a huge number of unfilled jobs may also come as a surprise.
With our official unemployment rate at 4.9%, we know that the labor markets have improved significantly in recent years. It’s great that US businesses are hiring, but these record numbers of job openings are also a sign that business owners can’t find the skilled workers qualified to fill the jobs they have available. We’ll find out why as we go along today.
Before we get to that discussion, let’s briefly review two decidedly disappointing reports for August -- the ISM Manufacturing Index and the ISM Services Index. We’ll also look at another key report which significantly surprised on the upside. Let’s get started.