Six million job openings in this country aren't being filled, and it's not likely that the tax bill will solve that problem.
HRDive reports that with the U.S. unemployment rate at a record 17-year low of 4.1 percent, according to November numbers cited by The Washington Post, for five months there have been 6 million job openings. Empty. Going begging.
And the Bureau of Labor Statistics says that number has held steady. What's driving such high vacancies? According to the report, the percentage of Americans who are employed or actively job hunting, which fell from 2007's 66 percent—at the start of the Great Recession—and now stands at 62.7 percent. And it's hitting all sectors, the Post adds, across states, industries and levels of specialization, from winter resorts and transportation to construction and oil.
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Employers are crying that job candidates lack the necessary skills for many of the jobs on offer. But people can be trained, or can relocate; it's just not happening in sufficient numbers to help.
That big tax bill just pushed through Congress might not be any help, either, in growing jobs. With employers already facing six million vacancies, and being reluctant to raise wages or improve benefits enough to tempt workers to fill them, a tax cut isn't going to get the job done for an employer who needs people to do the work.
A WTVA report cites Susan Helper, a Case Western University professor and former chief economist with the Commerce Department, saying that if employers really wanted to find skilled workers, they would raise wages—but they're not willing to do so. Some economists are arguing that now isn't the time to cut taxes, especially with such a labor shortage, and Helper—and other economists—point out that in a sluggish 2.5 percent wage growth environment, increasing the pay on offer for a job could be a powerful incentive.
Helper says in the report, "Employers really aren't trying that hard. If you really want to fill a position, you would raise the wage. Employers seem extremely reluctant to raise wages."
"Wages are going nowhere without job training and increased productivity, and there's little to nothing in this tax bill that could catalyze that," Michael Block, chief strategist at investment firm Rhino Trading Partners, says in the report, which goes on to point out just how low a priority employees actually are on a prospective employer's list—saying, "But this all assumes employers are looking to hire, train or boost wages."
The signs are there that employers have other concerns, it adds: "Many indicators show jobs and wages are on the back burner. Paying down debt and buying stock back from shareholders were the top two goals CEOs mentioned in a survey done this summer by Bank of America. Mergers and acquisitions was third. Capital spending—like building plants or upgrading equipment, which can lead to more hiring—placed fourth."
Other hindrances to hiring include the issue of a shrinking labor force hit by the opioid epidemic, with men's participation in the workforce down by 20 percent and women's by 25 percent. And don't forget the loss of qualified immigrants, as foreign nationals are unable to obtain visas to work in this country.
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