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The number of help-wanted ads returned to pre-pandemic levels in January, particularly among industries that have weathered the pandemic relatively well, a sign that hiring could pick up from its sluggish pace at the start of the year.
Available jobs on job-search site Indeed were up 0.7% at the end of January from Feb. 1, 2020, according to the company’s measure of job posting trends. The number of postings to the site has grown since hitting a low in May, though the pace of new openings has slowed in recent months, Indeed said.
Industries that recovered quickly from the initial shock of the pandemic have led growth in job openings, said Jed Kolko, chief economist at Indeed. Those industries—such as warehousing, construction and delivery services—have held steady over the course of the pandemic.
Meanwhile higher-wage postings in technology and finance have recently picked up. “I think those are sectors that hire based on where they see the economy going longer term,” Mr. Kolko said. “Restaurants, beauty-and -wellness jobs and hair salons will hire pretty quickly if demand picks up but also might lay off people quickly. Higher-wage sectors hire and fire more slowly.”
A separate report from the Labor Department on Tuesday showed job openings rose modestly to 6.6 million in December. The total narrowly exceeded both the number of available jobs in November and from a year earlier. Job openings in December were still well below the number of people who were unemployed and seeking work, 10.7 million that month.
Steve Sweeney, president of NEMR Total HR, a human-resources advisory firm based in Marlton, N.J., said he works with a variety of small businesses—from law firms to pest-control companies—that have boosted hiring in recent months. Many have scaled up in anticipation of a stronger recovery once vaccinations ease the impact of the pandemic, he said.
“There’s a lot of talent in the labor pool,” said Mr. Sweeney, who said he has hired several people at his own business during the pandemic. The high number of unemployed workers presents an opportunity for smaller firms to quickly recruit, he said.
“Most of the businesses we deal with are smaller, so they can see things quickly turning around,” Mr. Sweeney said. “As soon as they realized that things were moving forward, they quickly began to hire and bring new people on staff.”
In the industries hit hardest by the pandemic, Indeed said job postings are lagging. Openings in hospitality and tourism, for example, are down nearly 37.9% from Feb. 1, 2020, according to Indeed’s data. In arts and entertainment, the number of postings on Indeed at the end of January were 16.8% below pre-pandemic levels.
Job postings are just one piece of a broader labor-market recovery. The number of available jobs would have to stay above the pre-pandemic level for some time to make up for job losses within the past year, Mr. Kolko said. “Getting back to baseline is an essential step. But it’s not enough,” he said.
The labor market’s recovery stalled at the end of last year, as virus cases surged and fresh limits on business activity were put in place. Hiring resumed in January, but overall employment remained about 10 million jobs below pre-pandemic levels, and layoffs remained elevated.
Some laid-off workers are finding that there aren’t many openings in their industry. But a high number of postings doesn’t necessarily mean job seekers can find the type of work they are searching for. Jeff Maddox, of Houston, lost his job as a director at BMO Capital Markets, an investment bank, last November.
Mr. Maddox said he is finding few open management positions in his job search. “It just feels like your odds are pretty terrible. Most of the postings have over 100 applicants. If you’re one of just 100 or 200 names, it’s tough,” he said.
This story has been published from a wire agency feed without modifications to the text.
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