| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Job Openings | 8.75M | 8.5M to 8.9M | 9.610M | 8.827M | 8.920M |
Highlights
The data on job openings and labor turnover (JOLTS) shows conditions in the labor market remain strong in August. The number of job openings rose 690,000 to 9.610 million in August after an upward revision to 8.920 million in July. The consensus in the Econoday survey of forecasters looked for 8.750 million job openings in August.
It seems that with the easing in the shortage of workers and less worry about a recession in the near future, businesses are modestly expanding their hiring plans, although the data were mixed across industries. Job openings in the private sector increased 600,000 in August, mostly due to 509,000 in professional and business services. These included an increase of 40,000 in health care and social assistance and 75,000 in"other" services. There was also a large increase of 86,000 in financial activities. Government jobs rose 90,000, mostly accounted for by a 76,000 increase in state and local education. The job openings rate rose to 5.8 percent in August from 5.4 in July and is the highest since 5.8 in May.
Hiring rose 35,000 to 5.857 million in August and was entirely due to private industries. The net gain reflects a few big declines like 59,000 in retail and 26,000 in construction that were more than offset by strong hiring in leisure and hospitality of 84,000 and smaller gains of 25,000 in professional and business services and 19,000 in finance and insurance. The hiring rate is steady at 4.7 in July and August, if a bit cooler than the month immediately prior.
Total separations rose 38,000 to 5.676 million in August. An increase of 52,000 in private separations was partially offset by a decline of 15,000 in government. Most private separations were in financial activities at 27,000 and professional and business services at 35,000. The separations rate is 3.6 in August, the same as in June and July. It appears that some of the workers laid off in finance and business services are getting picked up elsewhere. It is notable that the number of layoffs and discharges fell 1,000 to 1.680 million in August, suggesting that overall few businesses are reducing their present workforce.
The number of workers voluntarily quitting a subset of separations rose 19,000 to 3.638 million in August. Although the churn as workers leave one job for another in search of security, higher wages, and/or better benefits has settled down significantly, there are still workers switching jobs. In August, quits fell 15,000 in construction, 30,000 in manufacturing, 30,000 in information, and 52,000 in retail trade. However, there was a 105,000 jump in leisure and hospitality where workers are still seeing a competitive environment for staffing. The quits rate held unchanged at 2.3 in August from July.
Fed policymakers will continue to characterize the current labor market as tight even as it has cooled in the past five or six months. Job openings remain plentiful, hiring moderate, layoffs few, and workers optimistic about changing jobs.
It seems that with the easing in the shortage of workers and less worry about a recession in the near future, businesses are modestly expanding their hiring plans, although the data were mixed across industries. Job openings in the private sector increased 600,000 in August, mostly due to 509,000 in professional and business services. These included an increase of 40,000 in health care and social assistance and 75,000 in"other" services. There was also a large increase of 86,000 in financial activities. Government jobs rose 90,000, mostly accounted for by a 76,000 increase in state and local education. The job openings rate rose to 5.8 percent in August from 5.4 in July and is the highest since 5.8 in May.
Hiring rose 35,000 to 5.857 million in August and was entirely due to private industries. The net gain reflects a few big declines like 59,000 in retail and 26,000 in construction that were more than offset by strong hiring in leisure and hospitality of 84,000 and smaller gains of 25,000 in professional and business services and 19,000 in finance and insurance. The hiring rate is steady at 4.7 in July and August, if a bit cooler than the month immediately prior.
Total separations rose 38,000 to 5.676 million in August. An increase of 52,000 in private separations was partially offset by a decline of 15,000 in government. Most private separations were in financial activities at 27,000 and professional and business services at 35,000. The separations rate is 3.6 in August, the same as in June and July. It appears that some of the workers laid off in finance and business services are getting picked up elsewhere. It is notable that the number of layoffs and discharges fell 1,000 to 1.680 million in August, suggesting that overall few businesses are reducing their present workforce.
The number of workers voluntarily quitting a subset of separations rose 19,000 to 3.638 million in August. Although the churn as workers leave one job for another in search of security, higher wages, and/or better benefits has settled down significantly, there are still workers switching jobs. In August, quits fell 15,000 in construction, 30,000 in manufacturing, 30,000 in information, and 52,000 in retail trade. However, there was a 105,000 jump in leisure and hospitality where workers are still seeing a competitive environment for staffing. The quits rate held unchanged at 2.3 in August from July.
Fed policymakers will continue to characterize the current labor market as tight even as it has cooled in the past five or six months. Job openings remain plentiful, hiring moderate, layoffs few, and workers optimistic about changing jobs.
Market Consensus Before Announcement
July's 8.827 million was well below expectations and the lowest in more than two years. The consensus for August is a modest decline to 8.75 million.
Definition
The Labor Department's JOLTS report tracks monthly change in job openings and offers rates on hiring and quits. The reporting period lags other employment data including the employment situation report. The word JOLTS stands for Job Openings and Labor Turnover Survey.
Description
Although lagging the release timing of the employment situation report by a month, JOLTS provides additional information on the labor market. The payroll survey in the employment situation report provides numbers on net job changes. JOLTS breaks down labor market data into pre-net changes such as job openings, hires, and separations.
