More Workers Than Jobs or More Jobs Than Workers?
Well, we've been talking about the unemployment situation in this country. How much different than what the financial networks in Washington depict? Let's pull some stats together and look at the big picture.
Let's start with the main data point from a recent survey from magnifyingmoney.com.
In their survey, they found that 34% of employed Americans are thinking about quitting their jobs. Grant it this is a survey from a small sample size. However, that is higher than I would have thought.
Now let's switch to job openings. MarketWatch reported that the number of job openings hit an all-time record in June of 10.1 million. That's up from a record 9.5 million in May of job openings.
So thus far, these numbers line up. 10.1 million jobs are open and could be filled by someone who is unemployed. In addition to those employed, 34% are thinking about quitting their jobs for various reasons. Plus, you've got 10 million job openings and a high percentage of people who are employed are basically considering their options.
Now let's switch to July's employment report that was released last Friday. I can't stress enough how these government numbers do not match reality. However, this is the focus.
According to the Department of Labor, 943,000 new jobs were added in July. At the same time, 1.96 million Americans filed for unemployment benefits in July. That suggests that 1.9 million people lost their job in July.
Since early 2020, filings for unemployment benefits have greatly outweighed the reported job gains.
Now, let's add one more number to the mix. You would think that this is just a matter of counting people receiving unemployment benefits. Everything that I have seen has been based on estimates. Those estimates are in the neighborhood of 15 to 20 million people who will lose benefits on September 6th.
So let's pull all these numbers together:
34% of those employed are thinking about quitting their job
1,000,000 more people lost their jobs in July then reported job gains
10 million jobs are open in needing to be filled
An estimated 15 to 20 million people unemployment benefits as of September
Based on the numbers above, the job market's strength looks like it potentially is a temporary illusion. It would seem that it would be ill-advised to quit a perfectly good job based on this data. Based on those numbers, it looks like we potentially come to a spot where there will be more workers than job openings. Now, that is a tough reality for any politician to spin.
Need a second opinion about money and investment issues? Just ASK BOB! Bob is available and always happy to share his views.
Bob Brooks is a Financial Adviser and host of The Prudent Money Radio Show, aired daily at 3 PM CST on 91.3 FM, 97.5 FM, and 99.9 FM in the Dallas Forth Worth metroplex. Listen online at www,prudentmoney.com/radio-show. You can reach Bob at 972-386-0384 and online at email@example.com.