Help wanted: U.S. job openings reach record 6.3 million

WASHINGTON — U.S. employers sharply boosted demand for workers in January, advertising 6.3 million jobs at the end of the month, the most on records dating back 17 years.

The number of job opening soared 645,000 in January, the Labor Department said Friday, the largest onemonth increase in 2½ years. The number of people hired ticked up and fewer Americans quit in January compared with the previous month.

The huge demand for workers comes as the unemployment rate is already at a 17-year low of 4.1 percent. The report shows that overall hiring increased by a much smaller amount than job openings, suggesting that employers are having difficulty finding the workers they need. That may raise pressure on companies to increase pay in the coming months to attract more applicants.

The data could fuel debates about whether a “skills gap” has made it harder for companies to fill open positions. Business groups argue that many jobs, particularly in manufacturing, administrative work, and information technology, require greater or different skill sets than in the past, and not enough workers have them.

Some economists respond that businesses should offer higher wages if they are truly desperate for more employees. Americans’ paychecks have picked up a bit in recent years, but by most measures the gains are still sluggish

JOBS

vey and represents the highest level of confidence in the five-year history of this survey.

“We’re seeing just a tremendous amount of activity in the economy,” said Jeff Grace, who said he was surprised at his own optimism about the state economy.

Grace, CEO of Las Vegas-based information technology service company Neteffect, said he’s outgrown his office space. He has 25 employees, he said, and only expects more growth in the near term.

Like Grace, more than 42 percent of survey respondents said they plan to hire more employees over the next year, up from less than 36 percent who planned to increase their employee count last year.

“We have an offer in on a space

that’s twice our current size. Recruiting is definitely a high priority for us right now, and we’re investing in the current people we have in getting them trained and improving their skills and abilities,” he said.

Lydia High, owner of Las Vegas-based accounting firm Precise Business Management, said she also feels optimistic about growth in her own business as well as in her clients’ businesses.

High said she has three direct employees and 20 clients, several of whom have seen significant growth in the last 12 months.

“Several clients have added new employees and purchased new property,” she said.

More than half of all business leaders, nearly 53 percent of those who responded, said their company revenues increased over the past year. More than 70 percent of them expect that trend to continue over

the next 12 months.

Grace said he’s noticed that his clients are willing to invest.

“Many of our clients were apprehensive about investing in their IT,” he said. “They might have known that they needed to do something, but in challenging economic times they’re just less interested and less willing to spend the money. Recently there has, over the last year, been a very clear shift.”

The statewide survey by local firm Applied Analysis was conducted in January on behalf of Nevada State Bank. The bank surveyed more than 400 small-business decision-makers, including owners, operators and executives representing businesses with annual sales ranging from $250,000 to $10 million.

Contact Nicole Raz at nraz@ reviewjournal.com or 702-380-4512. Follow @Journalistnikki on Twitter.