Global| Apr 05 2016U.S. JOLTS: Job Openings Rate Eases, But Hires Rate Jumps
by:Tom Moeller
|in:Economy in Brief
Summary
The job openings rate fell to 3.7% during February from 3.8% in the prior month, revised from 3.7%. The decline left the reading stuck in the sideways trend of the last ten months. The private sector job openings rate of 3.9% compared [...]
The job openings rate fell to 3.7% during February from 3.8% in the prior month, revised from 3.7%. The decline left the reading stuck in the sideways trend of the last ten months. The private sector job openings rate of 3.9% compared to 2.2% in the public sector. 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. Hiring was stronger as past vacancies were filled. The hires rate in February totaled 3.8%, equaling the highest level of the economic expansion. The private sector rate jumped m/m to 4.2%, and compared to 1.6% in the public sector. The hires rate is the number of hires during the month divided by employment. The Bureau of Labor Statistics reports these figures in its Job Openings & Labor Turnover Survey (JOLTS).
The actual number of job openings fell 2.8% in February to 5.445 million, but remained up 6.1% y/y. A 7.9% y/y rise in private sector openings was led by a 27.0% y/y increase in construction. That was followed by a 14.1% y/y increase in professional & business services. Retail trade openings gained 14.5% y/y, but openings in leisure & hospitality remained unchanged y/y. Trade, transportation & utilities job openings increased 9.6% y/y while openings in the factory sector improved 4.3% y/y. Job openings in the education & health services area increased 9.6% y/y. Job openings in health care & social assistance gained 6.0% y/y while leisure & hospitality openings remained unchanged y/y. In the government sector, the number of openings declined 9.3% y/y.
The number of hires recovered 5.8% m/m to 5.422 million in February, and they were up 6.5% y/y. Private sector hiring also increased 6.5% y/y, reflecting an 18.6% y/y increase in retail trade. Leisure & hospitality hiring rose 11.1% y/y while factory sector jobs rose 6.5% y/y. Professional & business services jobs increased 1.3% y/y, but construction jobs fell 2.7% y/y. Government sector hiring increased 6.9% y/y.
The total job separations rate held steady m/m at 3.5%, down from its cycle high of 3.6% in December. The actual number of separations increased 6.5% y/y. In the retail trade area, separations rebounded 15.9% y/y. Leisure & hospitality sector separations jumped 11.7% y/y. Factory sector separations increased 16.6% y/y, but professional & business services separations increased a lesser 2.3% y/y. Education & health care separations eased 0.4% y/y. Separations include quits, layoffs, discharges, and other separations as well as retirements.
The layoff & discharge rate held near the record low at 1.2%. The private sector rate of 1.3% also was near the all-time low and compared to 0.5% in the public sector. Layoffs overall increased 1.2% y/y in the private sector, and 11.1% y/y in the public sector.
The JOLTS survey dates to December 2000 and the figures are available in Haver's USECON database.
| JOLTS (Job Openings & Labor Turnover Survey, SA) | Feb | Jan | Dec | Feb '15 | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Job Openings, Total | |||||||
| Rate (%) | 3.7 | 3.8 | 3.6 | 3.5 | 3.6 | 3.3 | 2.7 |
| Total (000s) | 5,445 | 5,604 | 5,281 | 6.1% | 9.7 | 28.7% | 4.6% |
| Hires, Total | |||||||
| Rate (%) | 3.8 | 3.6 | 3.8 | 3.6 | 43.6 | 42.2 | 39.6 |
| Total (000s) | 5,422 | 5,125 | 5,401 | 6.5% | 5.2% | 8.2% | 3.5% |
| Layoffs & Discharges, Total | |||||||
| Rate (%) | 1.2 | 1.2 | 1.2 | 1.2 | 14.9 | 14.7 | 14.7 |
| Total (000s) | 1,715 | 1,704 | 1,672 | 1.9% | 2.7% | 2.4% | -5.3% |
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.
More Economy in Brief
