WASHINGTON — Job openings increased in February and hiring climbed to the highest level in more than three years, signaling employers are optimistic about the economic outlook.
The number of positions waiting to be filled totaled 3.5 million in February, up from a revised 3.48 million the prior month, which was higher than previously estimated, the Labor Department said Tuesday on its website. Also, more people were added to private payrolls than at any time since October 2008, while the pace of firings was little changed, according to the report, known as the Job Openings and Labor Turnover survey, or JOLTs.
Better employment prospects may mean the setback in hiring in March will be short-lived, helping restore some of the 5 million jobs yet to be recovered in the aftermath of the 18-month recession that ended in June 2009.
The Labor Department said last week that payrolls in March only rose by 120,000, a five-month low, after a 240,000 gain the prior month. February’s job openings numbers suggest the March report could be a temporary bump. It usually takes one to three months for employers to fill openings.
The JOLTs report measures gross job gains, while the monthly jobs reports are net figures calculated after subtracting layoffs and “quits.”
CONSUMER DEMAND STILL LAGGING
The number of people hired rose to 4.39 million in February, Tuesday’s job report showed. Excluding government agencies, those finding new jobs climbed to 4.08 million, the most since a month after Lehman Brothers Holdings collapsed in September 2008.
The pickup in hiring may ease concerns raised by Federal Reserve Chairman Ben Bernanke last month that much of the improvement in the job market stems from fewer firings instead of more hiring.
“All of the broader fundamentals point to a stronger labor market,” said Eric Green, chief market economist at TD Securities in New York. At the same time, he said, “job growth is running well ahead of domestic demand. You will not be able to maintain this pace of job growth unless you have some promise that demand will be picking up.”
HIRING RATE RISES, FIRINGS STEADY
The hiring rate increased to 3.3 percent in February, Tuesday’s Labor Department report showed, the first increase since August and the fastest pace since March 2011.
Landry’s Inc., which owns more than 400 restaurants, hotels and casinos, can’t find enough workers, CEO Tilman J. Fertitta said during an interview April 4. The closely held company is looking for about 40 employees for its corporate office in Houston and thousands to fill roles at its U.S. properties, he said.
“Business is good,” he said. “The consumer is spending money.” The company is having trouble finding workers “at all levels,” Fertitta said.
Total firings, which exclude retirements and those who left their jobs voluntarily, increased by 14,000 to 1.67 million, Tuesday’s report showed, leaving the rate little changed at 1.3 percent.
About 2.09 million people quit their jobs in February, up from 2 million in January and the most since November 2008. The increase may signal workers are gaining confidence that they can find other jobs as the economy improves.
TWO MILLION NEW JOBS IN A YEAR
The February increase in job openings was paced by retailers, followed by health care and social assistance. Government agencies also put up more help-wanted signs.
In the 12 months ending with February, the economy created a net 2 million jobs, representing about 50.6 million hires, compared with about 48.6 million separations.
Considering the 12.8 million Americans who were unemployed in February, Tuesday’s figures indicate there were about 3.7 people vying for every opening, compared with about 1.8 when the recession began in December 2007.
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