The gulf between record job openings and a lack of people taking those jobs is forcing Wall Street to reassess the pace of the economic recovery.
Jobs were gutted during the pandemic and employment growth has been a closely watched gauge for investors. Increasing employment eventually results in increased consumer spending, which is the biggest driver of economic growth. Without the former, analysts have said, it will take longer than expected for the economy to operate at some semblance of a pre-pandemic normal.
“That time horizon keeps getting extended,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.
The Labor Department has reported that job openings reached 10.9 million in July, the most on record dating to 2000. Yet, there were roughly 8.7