US Job Openings Surge Back in September, JOLTS Rise 6.5%

September JOLTS Job Openings rose to 10.775M, reversing the largest one month drop on record in August of 10.053M which was revised up to 10.280M. This was the first time JOLTS were under 11million since September 2021. Job openings were up 6.5% month on month, still down -0.8% vs. it’s a peak in March 2022. 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.

Working

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

JOB OPENINGS AND LABOR TURNOVER – September 2022

JOLTS September 2022 Highlights

  • JOLTS US job openings for September 110.717M vs 10.000M estimate. Up 6.5% month on month. It was down -0.8% vs. it’s a peak in March 2022
  • Job openings largest increases in accommodation and food services at +215,000. Healthcare and social assistance rose by 115,000 and transportation warehousing and utilities increased by 111,000.
  • Decreases in wholesale trade at -104,000 and in finance and insurance -83,000,

Hires

  • In September, hires edged down to 6.1 million
  • The rate changed little at 4.0 percent
  • Hires decreased in durable goods manufacturing (-57,000) and in state and local government education (-40,000).

Separations

  • In August, total separations including quits, layoffs, and discharges and other separations were 5.7 million down 370,000 on the month or -3.7%
  • Quits little changed at 4.1 million.
  • The quits rate is a measure of workers willingness or ability to leave jobs.
  • The quits rate was at 2.7% for the 3rd month in a row signaling steady.
  • Layoffs and discharges edged down to 1.3 million
  • The number of other separations decreased in September to 299,000 (-84,000). Other separations decreased in health care and social assistance (-31,000); professional and business services (-28,000) and finance and insurance (-20,000). Other separations increased in other services (+13,000) and federal government (+3,000).

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

Job openings continue to exceed the number of unemployed people seeking work. In July there were a seasonally adjusted 11.2 million job openings, well above the six million unemployed people looking for work in August.

The number of workers seeking unemployment assistance is also below prepandemic levels. Aaron Terrazas, chief economist at the jobs website Glassdoor, said the labor market has been surprisingly resilient this year.

“It’s still going hot,” he said. “It’s an extended summer, but everyone is waiting for winter to come.”

“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 September employment numbers on Friday.

Source: TradersCommunity Data, BLS

From The TradersCommunity News Desk