The JOLTS survey is the Labor Department’s report on job openings, quitting, hiring and layoffs and offers clues on the trajectory of the U.S. labor market. The report showed Job openings in the U.S. job openings increased to 11.239 mln in July from a revised 11.040 mln (from 10.698 mln) in June. In July, the number and rate of total separations were little changed at 5.9 million and 3.9 percent, respectively. Total separations increased in transportation, warehousing, and utilities (+65,000).
Job openings still greatly exceed the number of unemployed people seeking work and private-sector estimates show labor demand remains high but slowing with the economy loses steam.
JOLTS is the Job Openings and Labor Turnover Survey published by the BLS.
JOLTS July 2022 Highlights
- JOLTS US job openings increased to 11.239 mln in July from a revised 11.040 mln (from 10.698 mln) in June.
- Rate of job openings were little changed at 6.9 percent
- Job openings increased in transportation, warehousing, and utilities (+81,000); arts, entertainment, and recreation (+53,000); federal government (+47,000); and state and local government education (+42,000). Job openings decreased in durable goods manufacturing (-47,000).
Hires
- In July, the number of hires was little changed at 6.4 million and the rate was unchanged at 4.2 percent. Hires were little changed in all industries.
Separations
- In July, the number and rate of total separations were little changed at 5.9 million and 3.9 percent, respectively. Total separations increased in transportation, warehousing, and utilities (+65,000).
- In July, the number and rate of quits were little changed at 4.2 million and 2.7 percent, respectively.
- Quits decreased in health care and social assistance (-73,000) and in state and local government education (-21,000). Quits increased in transportation, warehousing, and utilities (+39,000).
- In July, the number of layoffs and discharges was little changed at 1.4 million and the rate was unchanged at 0.9 percent. Layoffs and discharges were little changed in all industries.
- The number of other separations was little changed in July at 352,000. Other separations increased in wholesale trade (+10,000); information (+8,000); and nondurable goods manufacturing (+6,000). Other separations decreased in accommodation and food services (-25,000) and in federal government (-4,000).
Establishment Size Class
In July, the hires rate increased in establishments with 1,000 to 4,999 employees. The layoffs and
discharges rate increased in establishments with 250 to 999 employees but decreased in establishments
with 1,000 to 4,999 employees. For a more in-depth description of the JOLTS establishment size class
estimates, please visit www.bls.gov/jlt/sizeclassmethodology.htm
Separation Definition
Total separations include quits, layoffs and discharges, and other separations. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer. Other separations include separations due to retirement, death, disability, and transfers to other locations of the same firm
Private Sector Estimates
Separate private-sector estimates showed demand for workers remains robust
Jobs site ZipRecruiter estimates there were about 10 million job openings through mid-August, down from the seasonally adjusted 11.2 million openings in July.
“It looks like the Fed raising rates is killing demand across all sectors,” said Julia Pollak, chief economist of ZipRecruiter. “It’ll become easier to hire in the coming month while candidates become more likely to accept a job offer.”
“Any person looking for a job before might have been limited to the three job openings in their neighborhood, but now they can apply for 3,000 remote job openings within their occupation nationwide,” Ms. Pollak said.
Several companies, including Ford Motor Co., Walmart Inc., Robinhood Markets Inc. and Redfin Corp., have said they are laying off workers or plan to shrink their workforce as they face declining business activity and rising interest rates.
Companies such as Netflix Inc. and Tesla Inc., along with Ford Motor Co., Walmart Inc., Robinhood Markets Inc. Redfin Corp. and Compass Inc., have been laying off workers amid rising costs, but the layoffs in the technology industry remain limited.
“There have been some very high-profile layoffs, but that doesn’t necessarily mean that there are widespread layoffs,” said Daniel Zhao, senior economist at jobs site Glassdoor last month.
Released Tuesday a report showing consumer confidence improved in August, ending a three-month streak of declines. Private-research group the Conference Board said Tuesday that its consumer-confidence index rose to 103.2 in August from a revised 95.3 in July, as households’ concerns about inflation retreated amid lower gasoline prices.
While the U.S. economy in July had recouped the 22 million jobs it lost at the start of the Covid-19 pandemic, the labor force remains smaller than it was in the beginning of 2020. The labor-force participation rate fell to 62.1% in July, below the 63.4% in February 2020.
The Labor Department will release its June employment numbers on Friday.
Source: TradersCommunity Data, BLS, WSJ
From The TradersCommunity News Desk