Nowadays, dispatches from the impossibly hot pandemic-era labor market have become a bit anticlimactic.
Yet they’re still worth highlighting, given that employers are still trying to cope with excess demand and open jobs, and the Omicron variant crashing down on the economy — driving new infections to over 1 million a day in the U.S.
On Tuesday, the Labor Department’s closely watched Job Openings and Labor Turnover Survey (JOLTS) found that there were over 10 million vacancies in the latest month, with a record 4.5 million people bidding adieu to their gigs. Stocks reacted in mixed fashion, but remained perched comfortably within view of record highs.
Yahoo Finance’s Emily McCormick reported that turnover was particularly high in the beleaguered food service industry, where Omicron is becoming a drag on indoor dining. Meanwhile, the sheer numbers of workers testing positive and having to isolate themselves are wreaking havoc on travel, retail and public services in urban areas. On Tuesday, Macy’s (M) was forced to cut store hours as new infections created new staffing headaches.
“The massive shortage of workers continues… because the economy is booming,” according to FWDBonds chief economist Chris Rupkey.
“The economic recovery is over and companies have shifted their demand for workers at a pace that is normally only seen during economic booms,” he said in a note to clients. “The economy is booming today but for how long is the question with the spread of the latest COVID variant that is closing many schools and slowing commerce and buyer traffic at many shops and malls.”
