The BLS released their JOLTS report today and shows a whopping 11.5 million open jobs.
On the last business day of March, the number of job openings was little changed at 11.5 million, the highest level in the history of the series which began in December 2000. Over the month, the job openings rate was little changed at 7.1 percent. Job openings increased in retail trade (+155,000) and in durable goods manufacturing (+50,000). Job openings decreased in transportation, warehousing, and utilities (-69,000); state and local government education (-43,000); and federal government (-20,000). Job openings increased in the South region.
The highest level in history since 2000? What’s going on? What’s happening in America is a huge demographic shift. There are 60 million baby boomers all reaching age 65+ by 2030 which is just a short 8 years away. Behind them are 40 million Gen Xers that are ready to retire as well. There are younger people behind the boomers and Gen Xers but there aren’t enough to replace the retiring ones.
What is happening is 10,000 boomers retire every day. Whether an airline pilot, doctor, lawyer, engineer, or warehouse worker, a person leaving the workforce due to retirement means they will no longer be contributing to productivity but will continue to consume so who will fill the gap? The problem in Canada has become harsh enough that the Canadian government has opted to open borders and allow more immigrants to come in and fill the gap. Will the U.S. follow suit? Only time will tell, stay tuned and stay solvent.