U.S. employers posted the most jobs in two decades in August, and hiring also reached a record high, fresh evidence that companies are desperate to staff up amid solid economic growth. And workers are seeing wages rise in the hot job market.

Job openings rose a slight 0.8 percent to 7.14 million, the highest on records dating back to December 2000, the Labor Department said Tuesday. That is also far more than the 6.2 million of people who were unemployed that month.

The number of available jobs has swamped the number of unemployed for five straight months. Hiring has been solid, which has pushed down the unemployment rate to a nearly five-decade low of 3.7 percent.

Also, workers are finally starting to see their paychecks grow a little faster.

Weekly wages rose at an annualized rate of 3.3% in the third quarter, the Labor Department said. That beats the 2.6% increase in inflation over the same period and is better than the 2% increase in wages in the second quarter, which wasn’t enough to make up for inflation.

Wages have been the missing piece of America’s economic recovery, with flat or very slow growth depending on which measure is used. Even the White House Council of Economic Advisers only found a 1.4% increase over the past year using adjustments that take into account benefits and changes in the workforce that make wage growth look higher.

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Strong demand for workers when so few are out of work may force more companies to raise pay in the coming months.

From the report:


Job Openings

On the last business day of August, the job openings level reached a series high of 7.1 million. The job openings rate was 4.6 percent. The number of job openings was little changed for total nonfarm, total private, and government. Job openings increased in federal government (+15,000). The number of job openings was little changed in all four regions.

Hires

The number of hires in August reached a series high of 5.8 million. The hires rate was 3.9 percent. The number of hires was little changed for total nonfarm, total private, and government. Hires were little changed in all industries and in all four regions.

Source: US Department of Labor

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President Donald Trump celebrated the report on Twitter, tweeting: “Incredible number just out… Astonishing! It’s all working!” Trump added that the stock market was “up big” and referenced “Strong Profits.”

Yet so far, pay raises have been modest. Average hourly earnings rose 2.8 percent in September compared with a year earlier. That’s much higher than several years ago, but below the roughly 4 percent gain that is typical when unemployment is so low.

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It’s a sharp turnaround from the Great Recession and its aftermath. In 2009, there were as many as six unemployed workers for each available job. Now, that number has fallen below one.

Employers hired roughly 5.8 million people in August, the report showed. That is also the most on record, but that increase partly reflects population growth. The percentage of the workforce that found jobs in August ticked up to 3.9 percent from 3.8 percent in July. That matched an 11-year high first reached in May.

Job openings rose in August in professional and business services, which include mostly higher-paying positions in engineering, accounting and architecture, as well as temporary help. Postings in that category have jumped 27 percent from a year ago.

Construction firms are also desperate for workers, posting 298,000 open jobs. That’s nearly 39 percent more than a year ago. Job openings also increased in finance and insurance and health care.

Openings fell in August from the previous month in manufacturing, retail, and slipped slightly in hotels and restaurants.