US Job Openings in November 10.458M Much Higher Than 10.000M Estimate

Job Openings (JOLTS) in November of 2022 were reported as 10.458 million much higher than the 10.00 million consensus estimate. The report follows the prior reported 10.33 million being revised higher to 10.512M. For perspective note this report lags the BLS jobs report by one month, which is released Friday. The rate was unchanged at 6.4 percent but was 0.9 percentage points lower than its peak in March 2022.

In November, job openings increased in professional and business services (+212,000) and in nondurable
goods manufacturing (+39,000). The number of job openings decreased in finance and insurance
(-75,000) and in federal government (-44,000).

Working

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

The JOLTS job data is a favored measure for the Fed, but it is on a lag (November data). The BLS December employment report will be released on Friday with expectations of 200K.

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 November 2022 Highlights

  • Job openings 10.458M vs 10.000M estimate
  • Hires rate 3.9% vs 4.0%
  • Quits rate 2.7% vs 2.6% last month (down from 2.7%)
  • Layoffs 0.9% vs 0.9% last month
  • Turnover rate 3.8% vs 3.8% last month
  • In November, job openings increased in professional and business services (+212,000) and in nondurable goods manufacturing (+39,000).
  • The number of job openings decreased in finance and insurance (-75,000) and in federal government (-44,000).
United States Job Openings

Hires

  • In November, hires changed little at 6.1 million
  • The rate changed little at 3.9 percent
  • Hires increased in health care and social assistance (+74,000).

Separations

  • In November, the number of total separations changed little at 5.9 million, and the rate held at 3.8 percent.
  • The number of total separations increased in health care and social assistance (+99,000) and in transportation, warehousing, and utilities (+76,000).
  • In November, the number and rate of quits were little changed at 4.2 million and 2.7 percent, respectively. Quits increased in health care and social assistance (+82,000); transportation, warehousing, and utilities (+73,000); and information (+19,000).
  • The quits rate is a measure of workers willingness or ability to leave jobs.
  • In November, the number of layoffs and discharges changed little at 1.4 million, and the rate remained at 0.9 percent. Layoffs and discharges increased in finance and insurance (+19,000).
  • The number of other separations were little changed in November to 347,000 (+83,000). Other separations increased in professional and business services (+49,000)

Establishment Size Class

In November, the total separations rate increased in establishments with 50 to 249 employees. The quits
rate increased in establishments with 1 to 9 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

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 December employment numbers on Friday.

Source: TradersCommunity Data, BLS

From The TradersCommunity News Desk