Global| Dec 09 2014U.S. JOLTS: Job Openings Rate Improves as Hiring Remains Firm
by:Tom Moeller
|in:Economy in Brief
Summary
The job openings rate during October ticked up to 3.3%, close to where it's been for six months. 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 [...]
The job openings rate during October ticked up to 3.3%, close to where it's been for six months. 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. The actual number of job openings surged 21.0% y/y to 4.834 million. The Bureau of Labor Statistics reports these figures in its Job Openings & Labor Turnover Survey (JOLTS).
The private-sector job openings rate recovered to 3.6% its highest level since April 2001, up from the recession low of 1.7%. The rate in leisure & hospitality businesses was 4.7%, the highest point since May. The rate in the professional & business services industries held at 4.6% for the third straight month and in the health care & social assistance sector it remained high at 4.1%. The 3.1% rate in trade, transportation & utilities industries was up from the recession low of 1.2%. The 2.3% rate in the factory sector was down after five months at 2.4%. The construction rate improved to 2.2%. The job openings rate in the government sector fell m/m to 1.8%, its lowest level since March..
The hires rate held at its cycle high of 3.6%. The hires rate is the number of hires during the month divided by employment. The private sector hires rate slipped to 4.1%. Amongst leisure & hospitality firms the rate held at 6.0%. The rate in professional & business services retreated to 5.6% but in construction it improved to 5.0%. The hiring rate in education slipped to 2.8% but in the factory sector it held at 2.3%. In the government sector the hiring rate held at a low 1.4%.
The number of hires slipped 0.4% m/m but increased 12.0% y/y. Private sector hires rose 12.2% y/y. Professional & business services hiring increased 21.8% y/y and factory sector employment grew 20.1% y/y. Trade, transportation & utilities jobs rose 18.3% y/y. Hiring in the health care & social assistance sector improved 13.4% y/y and leisure & hospitality sector employment increased 8.6%. Government hiring rose 8.9% y/y.
The job separations rate jumped to 3.5% and the actual number of separations increased 12.1% y/y. Separations include quits, layoffs, discharges, and other separations as well as retirements. The private sector separations rate held at 3.8%, while the government sector's rate inched remained at 1.4%. The layoff & discharge rate held near the record low of 1.2%. The private sector layoff rate inched up m/m to 1.4% and the government's rate was steady at 0.4%.
The JOLTS survey dates to December 2000 and the figures are available in Haver's USECON database.
| JOLTS (Job Openings & Labor Turnover Survey, SA) | Oct | Sep | Aug | Oct.'13 | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Job Openings, Total | |||||||
| Rate (%) | 3.3 | 3.2 | 3.4 | 2.8 | 2.8 | 2.6 | 2.5 |
| Total (000s) | 4,834 | 4,685 | 4,853 | 21.0% | 7.4% | 3.1% | 22.4% |
| Hires, Total | |||||||
| Rate (%) | 3.6 | 3.6 | 3.4 | 3.4 | 39.6 | 38.8 | 38.1 |
| Total (000s) | 5,055 | 5,075 | 4,742 | 12.0% | 3.3% | 4.2% | 3.0% |
| Layoffs & Discharges, Total | |||||||
| Rate (%) | 1.2 | 1.2 | 1.2 | 1.1 | 14.6 | 15.5 | 15.7 |
| Total (000s) | 2.8% | 2.1% | -6.2% | 9.9% | -4.6% | 1.2% | -4.8% |
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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