The August JOLTS data confirms the softer employment trend that began in the second half of 2024, with a tepid number of job openings, with a lackluster rate of hiring (down for the third straight month) that highlights the weak demand for labor. Remains to be seen if the Federal Reserve's September rate cut will be enough to boost employers' confidence, or if more easing is needed.

The number of job openings rose to 7.227 million (4.3 percent) in August, from a upwardly revised 7.208 million previously 7.181 million (4.3 percent) in July and compared to the expectation of 7.100 million in the Econoday survey of forecasters. Job openings are down by 422,000 compared to a year ago.

August hires were 5.126 million (3.2 percent), after 5.240 million (3.3 percent) in July, and were lower by 104,000 compared to August 2024.

The number of total separations was 5.111 million (3.2 percent) in August, vs 5.221 million (3.3 percent) in July. Within separations, August quits were at 3.091 million (1.9 percent) after 3.166 million (2.0 percent) in July, while layoffs and discharges came in at 1.911 million (1.2 percent) following 1.751 million (1.1 percent) in July.

Employers appear increasingly wary of adding staff. Job openings are expected down again at 7.100 million rate in August versus a surprisingly low 7.181 million in July and 7.357 million in June.

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.