| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Job Openings | 8.0M | 7.8M to 8.1M | 8.184M | 8.140M | 8.230M |
Highlights
The data on job openings in June shows a decrease of 46,000 to 8.184 million after an upward revision to 8.230 million in May. The June level is above the consensus of 8.0 million in the Econoday survey of forecasters.
Although job openings are substantially lower than June 2023's level of 9.125 million, they're above pre-pandemic levels and remain relatively plentiful. The openings rate is 4.9 percent in June, the same as in May and below 5.5 in June 2023.
Job openings fell 102,000 for private industries in June with widespread declines led by a 100,000 drop in manufacturing. Nonetheless there were a few sectors with jobs on offer. Trade, transportation, and utilities rose 153,000 in June and leisure and hospitality were up 104,000. Openings in government gained 56,000 in June and were particularly plentiful at the state and local level with 118,000 unfilled positions.
The number of hires fell 314,000 to 5.341 million in June after 5.655 million in May, and were notably slower than 5.895 million in the year-ago month. The rate of hires fell to 3.4 in June after 3.4 in May and below 3.8 in June 2023. Hiring was down 308,000 for the private sector, with the large declines of 115,000 in professional and business services and 145,000 in leisure and hospitality. It is possible that leisure and hospitality is again looking at a dearth of labor supply in this sector and simply can't find people to fill open jobs. Government hiring was down 8,000.
The total number of separations was down 305,000 to 5.092 million in June after 5.397 million in May and below 5.895 million in in June 2023. This is the lowest number of separations since 4.815 million in September 2020. The separations rate was down to 3.2 in June after 3.4 in the prior month and 3.6 a year earlier. There was a decline of 244,000 in private sector jobs in which the largest share was a 99,000 decline in leisure and hospitality. Government job separations were down 58,000. Fewer separations suggest that businesses are holding on to workers where they can, or that any recent adjustments to payrolls are mostly complete.
The number of job quits a subset of separations was down 121,000 to 3.282 million in June from 3.403 million in May and below 3.716 million in June 2023. The quits rate was unchanged at 2.1 in June from May and below 2.4 in the year-ago month. Private sector job quits were down 60,000 and seem in large part due to a decline of 64,000 among construction workers and a 48,000 drop in leisure and hospitality. Quits remained active with a 82,000 increase in professional and business services. Quits in government jobs were down 61,000 and mostly from a 59,000 decrease among state and local employees. There is less churn in the labor market with workers quitting in search of better compensation while employers are having to compete for experienced employees. However, the levels remain consistent with a healthy labor market.
Total layoffs and discharges another subset of separations were down 180,000 in June to 1.498 million after 1.678 million in May, and below 1.589 million in June 2023. The layoffs and discharges rate was 0.9 in June after 1.1 in May and 1.0 in June 2023. Most layoffs and firing were in a 175,000 decrease in the private sector while government was down 5,000. Overall layoff activity is quite low.
Although job openings are substantially lower than June 2023's level of 9.125 million, they're above pre-pandemic levels and remain relatively plentiful. The openings rate is 4.9 percent in June, the same as in May and below 5.5 in June 2023.
Job openings fell 102,000 for private industries in June with widespread declines led by a 100,000 drop in manufacturing. Nonetheless there were a few sectors with jobs on offer. Trade, transportation, and utilities rose 153,000 in June and leisure and hospitality were up 104,000. Openings in government gained 56,000 in June and were particularly plentiful at the state and local level with 118,000 unfilled positions.
The number of hires fell 314,000 to 5.341 million in June after 5.655 million in May, and were notably slower than 5.895 million in the year-ago month. The rate of hires fell to 3.4 in June after 3.4 in May and below 3.8 in June 2023. Hiring was down 308,000 for the private sector, with the large declines of 115,000 in professional and business services and 145,000 in leisure and hospitality. It is possible that leisure and hospitality is again looking at a dearth of labor supply in this sector and simply can't find people to fill open jobs. Government hiring was down 8,000.
The total number of separations was down 305,000 to 5.092 million in June after 5.397 million in May and below 5.895 million in in June 2023. This is the lowest number of separations since 4.815 million in September 2020. The separations rate was down to 3.2 in June after 3.4 in the prior month and 3.6 a year earlier. There was a decline of 244,000 in private sector jobs in which the largest share was a 99,000 decline in leisure and hospitality. Government job separations were down 58,000. Fewer separations suggest that businesses are holding on to workers where they can, or that any recent adjustments to payrolls are mostly complete.
The number of job quits a subset of separations was down 121,000 to 3.282 million in June from 3.403 million in May and below 3.716 million in June 2023. The quits rate was unchanged at 2.1 in June from May and below 2.4 in the year-ago month. Private sector job quits were down 60,000 and seem in large part due to a decline of 64,000 among construction workers and a 48,000 drop in leisure and hospitality. Quits remained active with a 82,000 increase in professional and business services. Quits in government jobs were down 61,000 and mostly from a 59,000 decrease among state and local employees. There is less churn in the labor market with workers quitting in search of better compensation while employers are having to compete for experienced employees. However, the levels remain consistent with a healthy labor market.
Total layoffs and discharges another subset of separations were down 180,000 in June to 1.498 million after 1.678 million in May, and below 1.589 million in June 2023. The layoffs and discharges rate was 0.9 in June after 1.1 in May and 1.0 in June 2023. Most layoffs and firing were in a 175,000 decrease in the private sector while government was down 5,000. Overall layoff activity is quite low.
Market Consensus Before Announcement
The US labor market has been cooling but if so only slightly. June's consensus is 8.0 million job openings versus May's 8.14 million and April's 7.92 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.
