The number of job openings in September is down 418,000 to 7.443 million after a downward revision to 7.861 million in August. The September level is below the consensus of 7.900 million in the Econoday survey of forecasters. The job opening rate is down to 4.5 in September after 4.7 in August and below 5.6 in September and the lowest since 4.5 in December 2020. Both the level of job openings and the job opening rate are consistent with a healthy labor market and modest expansion. The labor market has cooled significantly since the peaks in 2022 with recent months looking more stable with tempered job gains.

September job openings are down 286,000 for private payrolls. Openings declined sharply at 111,000 in leisure and hospitality, 134,000 in trade, transportation, and utilities, and 175,000 in private education and health services. There was some offset from gains of 93,000 in financial activities and 77,000 in professional and business services. Government jobs are down132,000 in September, mainly in state and local government where payrolls are down 104,000. Jobs related to the school year have been filled and the end of vacation means cutbacks in travel for many families.

Hiring is up 123,000 to 5.558 million in September after 5.435 million in August. The hiring rate is up to 3.5 in September from 3.4 in August and down from 3.7 in September 2023. Private sector hiring is up 144,000 in September with widespread gains led by 50,000 in manufacturing and 44,000 in trade, transportation, and utilities. Government hiring is down 22,000 in September and is mostly at the state and local level at down 19,000.

Separations are up 28,000 to 5.196 million in September after 5.168 million in August. The Separations rate is unchanged at 3.3 in September from August and slightly below 3.5 in September 2023. Private industry separations are up 43,000, mainly from an increase of 44,000 in manufacturing that may in part reflect the strike activity at Boeing. Government separations are down 14,000 with 10,000 of that in state and local governments.

The number of quits a subset of separations is down 107,000 in September to 3.071 million after 3.178 million in August. The quits rate is down to 1.9 in September after 2.0 in August and is below 2.3 in September 2023. There are 118,000 fewer quits in private industry in September and 11,000 more in government. Moderation in the number of workers voluntarily leaving means less churn in the labor market which is good news for employers in holding on to experienced workers in a less competitive job market. Job quitting has returned to more normal levels similar to that of pre-pandemic conditions in 2019.

The number of layoffs and discharges also a subset of separations is up 186,000 in September to 1.833 million after 1.668 million in August. The rate for layoffs and discharges is up to 1.2 in September after 1.0 in August and September 2023. The uptick should be viewed with caution. There may have been some temporary layoff activity associated with the devastation of Hurricane Helene and the Boeing strike.

Economists look for the labor market to ease slightly with job openings down to a 7.9 million rate in September from 8.0 million in August.

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.

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.