Global| May 11 2021U.S. JOLTS: Job Openings & Hiring Rates Strengthen in March
by:Tom Moeller
|in:Economy in Brief
Summary
• Job openings increase to another record. • Hiring rate improves slightly. • Layoffs decline while quits stabilize. The Bureau of Labor Statistics reported that on the last business day of March, the level of job openings rose to a [...]
• Job openings increase to another record.
• Hiring rate improves slightly.
• Layoffs decline while quits stabilize.
The Bureau of Labor Statistics reported that on the last business day of March, the level of job openings rose to a record 8.12 million. The total job openings rate also reached a record 5.3%, which was increased from 5.0% in February, revised from 4.9%. The openings rate is calculated as job openings as a percent of total employment plus jobs that have not yet been filled. The hiring rate improved to 4.2% from 4.0%, up from a low 3.8% in both January & December. The overall layoff & discharge rate declined to a record low of 1.0%. The quits rate rose also was unchanged at the record high of 2.4%, which it has reached four times since October. The JOLTS figures date back to December 2000.
The private-sector job openings rate jumped to a record 5.6% from 5.3%. The leisure & hospitality rate surged to 8.1% while the professional & business services rate held steady at 6.2%. The factory sector rate surged to a record 5.4% but the education & health services rate fell to 5.7%. The government sector job openings rate also jumped to a record 3.7% from 3.0%. The private sector job openings level rose 6.1% (44.0% y/y) to 7.29 million.
In March, the private sector hiring rate edged higher to 4.6%, but remained well below the record 7.2% in May of last year. The leisure & hospitality rate eased to 8.6%. The professional & business service sector slipped to 5.4% but the factory sector hiring rate improved to 3.5%. The government sector hiring rate rose to 1.7%. It remained below the 2.6% high last August. The level of private sector hiring rose 2.6% (18.5% y/y) to 5.632 million.
Data on job separations reflect a combination of layoffs and quits. The separations rate of 3.7% in March compared to the record 10.8% in March of last year. The level of separations declined by two-thirds y/y. Private sector separations fell 68.3% y/y and the private separations rate eased to 4.1%. The government's rate slipped to 1.5%.
The layoff & discharge rate in the private sector fell to a record low of 1.1%. The professional & business services layoff & discharge rate fell to 1.7% and was down from an all-time high of 6.3% in April of last year. The 2.0% rate in construction compared to 0.8% in manufacturing. The 0.9% rate in the information sector remained below the record 6.8% in March of last year. It compared to 0.4% in government.
The slightly higher quits rate of 2.7% in the private sector remained up from 1.8% in May in May last year. It compared to 0.8% in government. In the leisure & hospitality sector, the quits rate rose m/m to 5.0%. The quits rate in professional & business services held steady at 2.9%. In manufacturing, the job quits rate also was steady m/m at 2.1% and remained up from 1.0% in April of last year. In finance, the quits rate eased to 1.4%. The level of job quits in the private sector rose by one-quarter y/y. In government, the level of quits fell 21.3% y/y.
The Job Openings and Labor Turnover Survey (JOLTS) are available in Haver's USECON database.
| JOLTS (Job Openings & Labor Turnover Survey, SA) | Mar | Feb | Jan | Mar'20 | Mar'19 | Mar'18 |
|---|---|---|---|---|---|---|
| Rate (%) | 5.3 | 5.0 | 4.7 | 3.7 | 4.7 | 4.4 |
| Total (000s) | 8,123 | 7,526 | 7,099 | 5,769 | 7,332 | 6,833 |
| Hires, Total | ||||||
| Rate (%) | 4.2 | 4.0 | 3.8 | 3.4 | 3.8 | 3.8 |
| Total (000s) | 6,009 | 5,794 | 5,465 | 5,132 | 5,684 | 5,636 |
| Layoffs & Discharges, Total | ||||||
| Rate (%) | 1.0 | 1.2 | 1.2 | 8.6 | 1.1 | 1.2 |
| Total (000s) | 1,480 | 1,723 | 1,724 | 13,046 | 1,721 | 1,783 |
| Quits, Total | ||||||
| Rate (%) | 2.4 | 2.4 | 2.3 | 1.9 | 2.3 | 2.2 |
| Total (000s) | 3,508 | 3,383 | 3,306 | 2,902 | 3,524 | 3,305 |
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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