| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Job Openings | 8.1M | 7.8M to 8.2M | 7.673M | 8.184M | 7.910M |
Highlights
The data on job openings and labor turnover (JOLTS) for July confirm that the labor market is seeing fewer job openings, modest hiring, and less churn in the form of job quits, although layoffs are a bit higher. The labor market has cooled but remains healthy against a backdrop of modest expansion. It appears to have normalized after the disruptions associated with the arrival of Covid.
Job openings are down 237,000 to 7.763 million in July after a downward revision to 7.910 million in June. The number of job openings in July is below the consensus of 8.100 million in the Econoday survey of forecasters and the lowest since 7.185 million in January 2021. The underlying trend appears to have returned to pre-pandemic conditions which is for moderate numbers of job openings in a modestly expanding economy. The rate of job openings is down to 4.6 percent in July from 4.8 in June, and is the lowest since 4.5 in December 2020.
The number of hires is up 273,000 to 5.521 million in July after 5.248 million in June. The level has not varied much since the start of the year, although it is trending lower unevenly. The hires rate is up to 3.5 in July after 3.3 in June and has been in a narrow range around the 3.5 mark since the start of the year.
The total number of separations is up 336,000 in July to 5.420 million after 5.084 million in June. The increase is overstated in that the level fell 313,000 in June from 5.397 million. The level has been holding around 5.4 million since November 2023. The separations rate is at 3.4 in July after 3.2 in June, and has been running around the 3.4-mark since November 2023.
The number of workers quitting their jobs a subset of separations is up 63,0000 to 3.277 million in July after 3.214 million in June. Compared to the June-July readings, the number of quits is the lowest since 3.289 million in December 2020. The quits rate is up a tenth to 2.1 in July from 2.0 in June and is only incrementally lower than the readings of the past year.
The number of layoffs and discharges are up 202,000 to 1.762 million in July after 1.560 million in June, more than retracing the decline in June from 1.678 million in May. The rate for layoffs and discharges is up to 1.1 in July after 1.0 in June. The rate has been essentially unchanged for the past year.
Job openings are down 237,000 to 7.763 million in July after a downward revision to 7.910 million in June. The number of job openings in July is below the consensus of 8.100 million in the Econoday survey of forecasters and the lowest since 7.185 million in January 2021. The underlying trend appears to have returned to pre-pandemic conditions which is for moderate numbers of job openings in a modestly expanding economy. The rate of job openings is down to 4.6 percent in July from 4.8 in June, and is the lowest since 4.5 in December 2020.
The number of hires is up 273,000 to 5.521 million in July after 5.248 million in June. The level has not varied much since the start of the year, although it is trending lower unevenly. The hires rate is up to 3.5 in July after 3.3 in June and has been in a narrow range around the 3.5 mark since the start of the year.
The total number of separations is up 336,000 in July to 5.420 million after 5.084 million in June. The increase is overstated in that the level fell 313,000 in June from 5.397 million. The level has been holding around 5.4 million since November 2023. The separations rate is at 3.4 in July after 3.2 in June, and has been running around the 3.4-mark since November 2023.
The number of workers quitting their jobs a subset of separations is up 63,0000 to 3.277 million in July after 3.214 million in June. Compared to the June-July readings, the number of quits is the lowest since 3.289 million in December 2020. The quits rate is up a tenth to 2.1 in July from 2.0 in June and is only incrementally lower than the readings of the past year.
The number of layoffs and discharges are up 202,000 to 1.762 million in July after 1.560 million in June, more than retracing the decline in June from 1.678 million in May. The rate for layoffs and discharges is up to 1.1 in July after 1.0 in June. The rate has been essentially unchanged for the past year.
Market Consensus Before Announcement
The US labor market has been cooling but job openings have been solid. July's consensus is 8.1 million versus 8.2 million in the two prior months.
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.
