USD Jumps, JOLTS Jobs Keep Softening Trend in US Labour
The US labour market has been slowing in 2024, as higher interest rates and borrowing costs take their tall on businesses. However, today’s JOLTS job openings came above expectations but they don’t really break the softening trend, with June’s numbers showing yet another decline compared to May.
The latest JOLTS report does not offer much hope for those looking for signs of labor market stabilization. Despite a steady decline in headline job openings, which remains below May’s figures after upward revisions, hiring has significantly decreased and continues to trend downward, reaching levels last seen in March 2020. Additionally, the very low quits rate suggests that workers lack confidence in finding better or new jobs in the near future.
US JOLTS Openings Data for June 2024
According to the US Bureau of Labor Statistics (BLS), the Job Openings and Labor Turnover Survey (JOLTS) reported 8.184 million job openings as of the last business day of June. This figure was higher than the market estimate of 8.03 million and followed 8.23 million openings reported in May (revised from 8.14 million). However, the hires rate dropped to its lowest level since March 2020, indicating a weakening in the labor market’s overall health.
- Job Openings: 8.184 million, above the estimate of 8.000 million
- Previous Month: Revised to 8.23 million from 8.140 million
- Change Over the Year: Decreased by 941,000
- Job Opening Rate: Steady at 4.9%
- Sector Changes:
- Accommodations and Food Services: +120K
- State and Local Government (excluding education): +94K
- Durable Goods Manufacturing: -88K
- Federal Government: -62K
- Quits Rate: 2.1%, revised from 2.2%, down 434,000 over the year
- Sector Changes:
- Construction: -64K
- State and Local Government (Education): -55K
- Separations Rate: 3.2%, largely unchanged from the previous month
- State and Local Government: -51K
- Arts, Entertainment, and Recreation: -39K
- Hires Rate: 3.6%, totaling 5.3 million hires, down 554,000 from a year ago
The rise in job openings is a positive indicator for the labor market, suggesting continued demand for workers. The quits rate holding steady indicates that employees feel confident in finding new jobs, which is typically a sign of a strong labor market.
Additionally, the number of unemployed persons per job opening remains low at 0.8, indicating that job seekers still have relatively favorable conditions for finding employment. This ratio, although slightly higher than the lows, is a positive indicator of labor market tightness and overall economic health.
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