Global| May 10 2016U.S. JOLTS: Job Openings Rate Strengthens, But Hires Ease
by:Tom Moeller
|in:Economy in Brief
Summary
The job openings rate increased to 3.9% during March from 3.8% in February, revised from 3.7%. The increase was to a level which equaled the record high. The private sector job openings rate held steady m/m at 4.1%, slightly below the [...]
The job openings rate increased to 3.9% during March from 3.8% in February, revised from 3.7%. The increase was to a level which equaled the record high. The private sector job openings rate held steady m/m at 4.1%, slightly below the record. This rate 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 March eased to 3.7%. The private sector rate declined m/m to 4.0%, and compared to 1.7% 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 increased 2.7% in March to 5.757 million (11.1% y/y), and neared July's record high. A 12.7% y/y rise in private sector openings was led by an 18.6% y/y increase in construction. That was followed by an 18.2% y/y rise in education & health services, and a 15.3% y/y increase in professional & business services. Manufacturing sector job openings increased 14.5% y/y, and openings in retail trade rose 9.6% y/y. Job openings in leisure & hospitality improved 4.7% y/y.
The number of hires declined 4.0% m/m to 5.292 million in March, but they were up 3.6% y/y. Private sector hiring increased 2.7% y/y, reflecting a 9.6% y/y rise in construction. Leisure & hospitality jobs improved 8.4% y/y, and education & health services jobs rose 5.4% y/y. Professional & business services employment was little changed y/y, while public sector jobs jumped 15.5% y/y.
The total job separations rate eased to 3.5%, down from its cycle high of 3.6%. The actual number of separations increased 1.2% y/y. Factory sector separations increased 10.0% y/y. Financial sector separations increased 8.5% y/y, and leisure & hospitality sector separations rose 4.8% y/y. Education & health care separations eased 0.4% y/y while professional & business services separations were little changed y/y. Separations include quits, layoffs, discharges, and other separations as well as retirements.
The layoff & discharge rate eased to 1.2%, and was near the record low. 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 declined 13.3% y/y in the private sector, but were up 1.9% 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) | Mar | Feb | Jan | Mar '15 | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Job Openings, Total | |||||||
| Rate (%) | 3.9 | 3.8 | 3.8 | 3.5 | 3.6 | 3.3 | 2.7 |
| Total (000s) | 5,757 | 5,445 | 5,604 | 11.1% | 9.7 | 28.7% | 4.6% |
| Hires, Total | |||||||
| Rate (%) | 3.7 | 3.8 | 3.6 | 3.6 | 43.6 | 42.2 | 39.6 |
| Total (000s) | 5,292 | 5,510 | 5,125 | 3.6% | 5.2% | 8.2% | 3.5% |
| Layoffs & Discharges, Total | |||||||
| Rate (%) | 1.2 | 1.3 | 1.2 | 1.4 | 14.9 | 14.7 | 14.7 |
| Total (000s) | 1,671 | 1,808 | 1,704 | -12.4% | 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.
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