Job Openings (JOLTS) in December of 2022 were reported as rising to 11.0 million, the most in 5 months and above market expectations of 10.25 million. 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 ratio of openings to unemployed people rose to a near record-high 1.9 from 1.7 a month earlier and compared to 1.2 before the pandemic.
In December, job openings increased in accommodation and food services (+409,000), retail trade (+134,000), and construction (+82,000). The number of available positions decreased in information (-107,000).
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 (December 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.
JOLTS December 2022 Highlights
- Job openings 11.01M vs 10.25M expected Prior was 10.458m
- Hires 4.0% vs 3.9% prior
- Quits 2.7% vs 2.7% prior
- Layoffs 1.0% vs 0.9% prior
- Layoffs and discharges decreased in finance and insurance (-43,000) but increased in federal government (+4,000).
- In December, the largest increases in job openings were in accommodation and food services (+409,000), retail trade (+134,000), and construction (+82,000). The number of job openings decreased in information (-107,000).
Hires
- In November, hires changed little at 6.2 million
- The rate changed little at 4.0 percent
- Hires changed little in all industries.
Separations
- In December, the number of total separations changed little at 5.9 million, and the rate remained unchanged at 3.8 percent. The number of total separations decreased in transportation, warehousing, and utilities (-67,000).
- In December, the number of quits was little changed at 4.1 million, and the rate was unchanged at 2.7 percent. Quits decreased in transportation, warehousing, and utilities (-69,000) but increased in other services (+65,000).
- In December, the number and rate of layoffs and discharges changed little at 1.5 million and 1.0
- percent, respectively. Layoffs and discharges decreased in finance and insurance (-43,000) but increased in federal government (+4,000). (See table 5.)
- The number of other separations was little changed in December at 336,000. Other separations increased in retail trade (+29,000) and in health care and social assistance (+19,000). Other separations decreased in state and local government, excluding education (-10,000) and in educational services (-6,000).
Establishment Size Class
In December, the job openings rate increased in establishments with 50 to 249 employees but decreased
in establishments with 5,000 or more employees. The total separations rate increased in establishments
with 10 to 49 employees but decreased in establishments with 50 to 249 employees and 250 to 999
employees. The quits rate increased in establishments with 10 to 49 employees but decreased in
establishments with 50 to 249 employees and 250 to 999 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