Global| Jul 13 2010JOLTS: U.S. Job Openings Slip Month over Month But Remain Well Improved From Low
by:Tom Moeller
|in:Economy in Brief
Summary
The Bureau of Labor Statistics reported that labor market conditions remained improved. The Job Openings & Labor Turnover Survey (JOLTS) indicated that the job openings rate during May slipped to 2.4% from 2.5% during April. [...]
The Bureau of Labor Statistics reported that labor market conditions remained
improved. The Job Openings & Labor Turnover Survey (JOLTS) indicated that
the job openings rate during May slipped to 2.4% from 2.5% during April.
Nevertheless, the rate remained improved from the recession low of 1.8% The
job openings rate is the number of job openings on the last business day of the
month as a percent of total employment plus job openings. Job availability
also slipped from April but it was up 28.9% versus May '09. Last year job
availability fell 17.8% following a 29.7% decline during 2008.
The private-sector job openings rate held on to its sharp improvement in April. At 2.4% it was improved from 2.0% during all of last year. The level of job openings rose 28.9% y/y and reflected roughly a doubling of factory & construction sector openings as well as a 7.6% increase in leisure & hospitality. These openings translated into an elevated hires rate of 3.4% and a 13.7% increase in overall hiring, but private sector hires grew a lesser 2.4%. This was led by a 26.5% rise in factory sector jobs and a 4.8% increase in education and health services employment. The hires rate is the number of hires during the month divided by employment.
The job separations rate remained at the series' low of 3.1% where it's been for four months. The actual number of separations fell 7.2% year-to-year with a 7.9% drop in the private sector. Separations include quits, layoffs, discharges, and other separations as well as retirements. The layoff & discharge rate alone remained at the two-year low of 1.4% as the actual number of layoffs fell 20.4% y/y after a 12.6% increase during 2009. The private sector layoff rate was 1.6% and it was 0.7% in government.
The JOLTS survey dates only to December 2000 but has followed the movement in nonfarm payrolls, though the actual correlation between the two series is low. A description of the Jolts survey and the latest release from the U.S. Department of Labor is available here and the figures are available in Haver's USECON database.
| JOLTS (Job Openings & Labor Turnover Survey) | May | April | March | May '09 | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|---|---|
| Job Openings, Total | |||||||
| Rate (%) | 2.4 | 2.5 | 2.1 | 1.9 | 1.9 | 2.2 | 3.1 |
| Total (000s) | 3,206 | 3,302 | 2,785 | 2,488 | 2,531 | 3,078 | 4,378 |
| Hires, Total | |||||||
| Rate (%) | 3.4 | 3.3 | 3.3 | 3.0 | 37.3 | 41.1 | 45.9 |
| Total (000s) | 4,504 | 4,292 | 4,331 | 3,962 | 48,649 | 56,082 | 63,234 |
| Layoffs & Discharges, Total | |||||||
| Rate (%) | 1.4 | 1.4 | 1.4 | 1.8 | 20.7 | 17.7 | 16.5 |
| Total (000s) | 1,865 | 1,760 | 1,821 | 2,342 | 27,683 | 24,589 | 22,606 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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