Tightening of Labor Market, Job Openings Likely to Prompt Rise in Wages

Jobs, Skills and Training

U.S. job openings rose in December to their second-highest level in 15 years and the number of Americans voluntarily quitting work hit a nine-year high—both signs of strengthening labor markets and increasing challenges for retaining talent.  Almost 3.1 million people quit their jobs in December, the highest number since December 2006. The quits rate, which the Federal Reserve uses as a measure of confidence in the job market, rose to its highest level since April 2008.  The increase in quits reflects the belief of workers that additional job opportunities are more widely available, and continuing reports of shortages of qualified workers in key positions are prompting some employers to raise wages to attract and retain employees.  Moreover, the number of unemployed job seekers per job opening fell to 1.4 in December, the lowest level since March 2007.