U.S. employers advertise most new jobs since ‘08
Number of job openings up 1.8 pct.
By Christopher S. Rugaber
AP Economics Writer
WASHINGTON (AP) — U.S. employers advertised more jobs in November and more Americans quit, positive signs for millions who are unemployed and looking for work.
The Labor Department said Friday that job openings rose 1.8 percent to a seasonally adjusted 4 million, the most in 5 1/2 years. And the number of people quitting increased 1.9 percent to a seasonally adjusted 2.4 million, a five-year high.
Job openings haven’t topped 4 million since March 2008, just a few months after the Great Recession began. Openings at that level are generally consistent with a healthy job market.
And more workers quitting can also be a positive signal, because people usually quit when they either have a new job — typically for more pay — or are confident they can find one.
The data suggest the competition for jobs is getting a little bit easier. There were 2.7 unemployed workers for each available job in November, down from 6.7 just after the recession ended in July 2009. In a healthy economy the ratio is roughly 2 to 1.
More job openings and quits suggest greater opportunities for the unemployed. But those positive trends haven’t recently translated into additional hiring. Overall hiring ticked up just 0.2 percent in November to nearly 4.5 million.
The figures also follow a disappointing report on December job growth. The government last week said employers added just 74,000 jobs in December. That’s the fewest in three years and below an average gain of 214,000 in the previous three months.
The unemployment rate fell to 6.7 percent, the lowest in more than five years. But the rate dropped mostly because more Americans gave up looking for work. The government counts people as unemployed only if they are actively hunting for jobs.
Last week’s employment report shows net payroll gains — the number of people hired minus those who were laid off, quit or retired. Friday’s report, known as the Job Openings and Labor Turnover survey, provides more details.
For example, it shows the overall number of people hired each month, rather than just the net gain. Total hires reached 4.6 million in September, a five-year high, but hiring has dipped since then.
In the past year, the number of job openings has increased 5.6 percent. But total hiring is only 1.7 percent higher.
Economists point to several reasons for the gap. Employers may not be offering sufficient pay and benefits to persuade more workers to take the jobs. They may also be pickier, believing they can find top-notch candidates with the unemployment rate still elevated.
Many employers say they can’t find enough qualified workers, particularly in high-skilled industries such as manufacturing and information technology.
Both Federal Reserve Chairman Ben Bernanke and Janet Yellen, who will succeed Bernanke as chairman next month, have cited greater overall hiring and quits as key signs of the job market’s improvement.
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Homebuilding dips, but year best since ‘07
Housing market recovering steadily
By Martin Crutsinger
AP Economics Writer
WASHINGTON (AP) — U.S. home construction slowed in December but ended 2013 with the best showing since the housing bubble burst.
The Commerce Department said Friday that builders broke ground last month at a seasonally annual rate of 999,000. That’s 9.8 percent lower than November’s pace of 1.12 million, which was the fastest in five years.
For the year, builders started 923,000 homes and apartments, up 18.3 percent from 2012. It was the fourth straight annual gain and the strongest since 2007, when 1.36 million homes were started.
The housing market has been recovering steadily over the past year, helping to boost economic growth and create jobs. But a rise in mortgage rates from record lows reached a year ago have started to weigh on those gains.
Still, economists said they December’s dip in activity followed a huge gain November. They also blamed some of the decline last month on cold weather, which may have disrupted some construction activity.
“Despite really bad weather, builders still managed to keep digging and that is a great indication that the housing market continues to move forward,” said Joel Naroff, chief economist at Naroff Economic Advisors.
For December, construction of single-family homes, which makes up roughly two-thirds of homebuilding, fell 7 percent to an annual rate of 667,000. Construction of apartments, which can be more volatile, dropped 14.9 percent to a 332,000 rate.
Applications for building permits, considered a good sign of future activity, fell 3 percent in December to a rate of 986,000. Single-family permits fell 4.8 percent. Permits for apartments were unchanged.
Construction activity in December fell 33.5 percent in the Midwest and 12.3 percent in the South. Construction rose 15 percent in the West and was unchanged in the Northeast.
Mortgage rates are roughly a percentage point higher than in the spring. Still, they remain low by historical standards. The average rate on a 30-year mortgage fell to 4.41 percent this week. That’s down from a peak of 4.6 percent in August.
U.S. homebuilders remain generally upbeat ahead of the spring home-buying season.
The National Association of Home Builders/Wells Fargo builder sentiment index slipped to 56 in January, down slightly from a 57 reading in December. Readings above 50 indicate more builders view sales conditions as good rather than poor. Even with the small dip, the overall index remains in positive territory and is nine points higher than it was a year ago.
The spring buying and selling season kicks off next month, traditionally the time of the year that sets the tone for residential hiring and construction. Many builders, particularly smaller firms, sell homes that will take months to build.
Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the homebuilders association.
