US Job Openings Fell in October, now 1% Lower Than March 2022 Peak

Job Openings dropped by 353,000 to 10.334 million in October of 2022, following a revised 10.687 million total in September (from 10.717 million). The rate changed little at 6.3 percent but was 1.0 percentage points lower than its peak in March 2022. Job openings decreased in state and local government, excluding education (-101,000); nondurable goods manufacturing (-95,000); and federal government (-61,000).  The number of job openings increased in other services (+76,000) and in finance and insurance (+70,000). 

Working

JOLTS is the Job Openings and Labor Turnover Survey published by the BLS.

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. 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.

JOB OPENINGS AND LABOR TURNOVER – October 2022

JOLTS October 2022 Highlights

  • On the last business day of October, the number of job openings edged down to 10.3 million (-353,000).
  • The rate changed little at 6.3 percent but was 1.0 percentage points lower than its peak in March 2022.
  • In October, job openings decreased in state and local government, excluding education (-101,000); nondurable goods manufacturing (-95,000); and federal government (-61,000). The number of job openings increased in other services (+76,000) and in finance and insurance (+70,000).
United States Job Openings

Hires

  • In October, hires edged down to 6.0 million
  • The rate edged down to 3.9 percent
  • Hires decreased in durable goods manufacturing (-57,000) and in state and local government education (-40,000).

Separations

  • In October, the number of total separations changed little at 5.7 million, and the rate was unchanged at 3.7 percent. The number of total separations changed little in all industries.
  • In October, the number and rate of quits were little changed at 4.0 million and 2.6 percent, respectively.
  • The quits rate is a measure of workers willingness or ability to leave jobs.
  • In October, the number of layoffs and discharges changed little at 1.4 million, and the rate was
  • unchanged at 0.9 percent. Layoffs and discharges decreased in federal government (-3,000).
  • The number of other separations were little changed in October at 270,000. Other separations
  • decreased in transportation, warehousing, and utilities (-14,000) and in durable goods manufacturing (-8,000). Other separations increased in real estate and rental and leasing (+7,000).

Establishment Size Class

In September, the job openings rate decreased in establishments with 5,000 or more employees. The quits rate decreased in establishments with 50 to 249 employees.

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

“It looks like the Fed raising rates is killing demand across all sectors,” said Julia Pollak last month, 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. Stanley Black & Decker Inc., Corteva Inc., Compass Inc. and Goldman Sachs Group Inc., have started to lay off employees or leave jobs unfilled to reduce their costs in an uncertain economy. Walmart Inc. said it would hire about 40,000 mostly seasonal workers to serve holiday shoppers, down from the 150,000 permanent employees it was looking for a year ago.

The Labor Department will release its November employment numbers on Friday.

Source: TradersCommunity Data, BLS

From The TradersCommunity News Desk