Global| Dec 11 2017U.S. JOLTS: Job Openings Rate Dips; Hiring Rate Improves
by:Tom Moeller
|in:Economy in Brief
Summary
The Bureau of Labor Statistics reported that the total job openings rate in October eased from the record high of 4.0% to 3.9%. The hiring rate rose, however, to 3.8% and equaled the expansion high. These figures are from the Job [...]
The Bureau of Labor Statistics reported that the total job openings rate in October eased from the record high of 4.0% to 3.9%. The hiring rate rose, however, to 3.8% and equaled the expansion high. These figures are from the Job Openings & Labor Turnover Survey (JOLTS), which dates back to December 2000.
The private sector job openings rate slipped to 4.2% following four consecutive months at 4.3%. The decline was pronounced in the factory sector as well as the trade, transportation & utility sectors and professional & business services. The rate improved in leisure & hospitality as well as construction. In health care & government the rate held steady.
The total number of job openings declined 2.9% (+7.3% y/y) reflecting a 3.3% drop (+7.0% y/y) in the private sector total. The job openings decline included manufacturing, trade, transportation & utilities and professional & business services. The number of job openings rose sharply in leisure & hospitality and the construction sector.
The private sector hiring rate increased to a cycle high of 4.2%, led by leisure & hospitality, health care & social services as well as industrial sector businesses. Elsewhere, the hiring rate declined moderately or held steady. Declines occurred in the retail, professional & business service and government sectors.
The overall number of hires strengthened, with sharp increases in the health care, leisure & hospitality and manufacturing sectors. Hiring weakened in construction, retail trade and government.
The overall job separations rate fell sharply to the lowest level in six months. The decline was led by leisure & hospitality, information and construction businesses. Separations picked in financial activities, educational services and trade, transportation & utilities.
The layoff & discharge rate retraced its September rise and returned to the lowest level since May. The decline was pronounced in the construction, leisure & hospitality and professional & business services sectors. Layoffs & discharges surged amongst financial sector firms. The actual number of discharges fell 6.6% (+2.4% y/y) to the lowest level in six months. Construction sector layoffs dropped sharply as did firing in the information and the leisure & hospitality sector.
The JOLTS survey dates to December 2000 and the figures are available in Haver's USECON database.
Why Are Men Working Less These Days? from the Federal Reserve Bank of Philadelphia is available here.
| JOLTS (Job Openings & Labor Turnover Survey, SA) | Oct | Sep | Aug | Oct '16 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| Job Openings, Total | |||||||
| Rate (%) | 3.9 | 4.0 | 4.0 | 3.7 | 3.7 | 3.6 | 3.3 |
| Total (000s) | 5,996 | 6,177 | 6,090 | 7.3% | 3.1% | 12.1% | 28.1% |
| Hires, Total | |||||||
| Rate (%) | 3.8 | 3.6 | 3.7 | 3.6 | 43.6 | 43.5 | 42.4 |
| Total (000s) | 5,552 | 5,320 | 5,420 | 6.8% | 1.2% | 5.8% | 8.2% |
| Layoffs & Discharges, Total | |||||||
| Rate (%) | 1.1 | 1.2 | 1.2 | 1.1 | 13.7 | 14.8 | 14.7 |
| Total (000s) | 1,631 | 1,746 | 1,781 | 2.4% | -4.8% | 2.8% | 2.3% |
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.
