CHARLOTTE, N.C. — Despite all the tough money headlines right now, the labor market is recovering from the height of the pandemic.
The latest numbers from the U.S. Labor Department show continuing claims for state unemployment fell to their lowest levels in decades.
Some people want to know what these numbers really mean.
THE QUESTION
Is the return of folks to their pre-pandemic jobs the biggest factor in declining jobless claims?
OUR SOURCES
THE ANSWER
No, we can verify the return of folks to their pre-pandemic jobs is not the biggest factor in declining jobless claims.
WHAT WE FOUND
The Labor Department reported the U.S. employment picture is still historically tight. Job openings outnumber people looking for work.
Fullencamp said that's actually driving people to look outside their prior positions.
"This is people voluntarily quitting their jobs to find new jobs," Fullencamp said. "And what we're seeing is that a lot of people are quitting their jobs to take other jobs that pay a lot higher, we're talking 5-, 6-, 7% more in terms of their wages, and maybe even higher."
Labor numbers show the pandemic has seen record numbers quitting. The latest report shows 4.4 million people chose to leave their jobs in February but hires that month totaled 6.7 million.
"That creates a churn effect," Fullencamp said. "It creates a shortage in certain places. And that also puts upward pressure on wages. It may even start to resolve this shortage of labor by drawing other people in from the sidelines."
That said, factors in the current trends are countless, according to Fullencamp.
"Our economy is really complex and dynamic," Fullencamp said. "And this is another great case, of some things pushing the supply of workers down, and some things pushing the demand for workers up."
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