According to last week’s report by the U.S. Labor Department, companies and governments posted 3.1 million job openings in August—down from 3.2 million in July. Experts explain that much of the high unemployment rate has to do with a lack of hiring, rather than a lack of openings. In fact, openings have risen 6.8 % this year, while actual hiring has only increased by 3.3 %. According to Henry Mo, an economist at Credit Suisse, increased financial and economic uncertainty has lead many companies to engage in a temporary hiring freeze, or a reduction in the number of new hires.
Many companies are looking for quality candidates, rather than quantity. As a result, they are holding off on hiring until they identify the right candidates. Some industries are finding it particularly difficult to find qualified candidates, such as information technology and manufacturing. Filling jobs in these industries can take up to three months! On a more positive note, the U.S. Bureau of Labor also reported that the economy added 103,000 jobs in September. Let’s hope more companies decide to resume hiring at a faster pace than in previous months this year!