Job openings fell to their lowest number since April 2021, as employers reduced hiring amid rising borrowing costs. The number of available positions declined to 9.6 million in June, the most recent month for which data is available, the U.S. Bureau for Labor Statistics said Tuesday. While hiring also edged down to the lowest level in more than two years, layoffs were little changed at 1.5 million. Those mixed signals point to enduring strength in the labor market even after the central bank has raised interest rates at the fastest pace in more than four decades.
- The quits rate, or number of resignations as a share of employment, slipped to 2.4% from 2.6%.
By Cate Chapman, Editor at LinkedIn News
A look at the Beveridge Curve tells most of the story for the data on job openings and labor turnover (JOLTS) for June. The number of job openings is trending lower – if a bit unevenly – but remains above pre-covid levels. On the other hand, the June national unemployment rate of 3.6% means that the labor market remains tight. Labor market conditions are as close to normal as they have been at any time since the onset of the pandemic.
The number of job openings in June was down 34,000 to 9.582 million after a downward revision to 9.616 million in May. The June level was below the consensus of 9.650 million in the Econoday survey of forecasters. The job openings rate was unchanged at 5.8 in June from May. Declines in the number of job openings were widespread, but a few categories have gains that nearly offset the decreases. Most notable was the 136,000 in health care and social assistance. The June level was the lowest since 9.288 million in April 2021.
While the number of job openings was trending lower, this was still a strong labor market with plentiful jobs available. If the pace of hiring was down, businesses continue to avoid laying off workers out of concern about losing skilled employees who might be difficult to replace later.
The number of new hires was down 326,000 to 5.905 million in June after 6.231 million in May. Hiring was down 311,000 in the private sector and 16,000 in government. The largest decline in private hiring was 146,000 in trade, transportation, and utilities of which 93,000 was in retail. The hiring rate was down two-tenths to 3.8 in June.
The total number of job separations was down 288,000 to 5.637 million in June after 5.925 million in May. Separations by private employers was down 257,000 and government was down 31,000. Separations were down 134,000 in the retail sector, while up 129,000 in professional and business services. The separations rate was down two-tenths to 3.6 in June.
Voluntary job quits were a subset of job separations. In June, quits were down 295,000 to 3.772 million after 4.067 million in May. The decline suggests less churn in the labor market from people leaving on job for another. The quits rate was down two-tenths to 2.4. However, the pace of quits remains elevated in the historical context.
Actual layoffs remain few. The number of layoffs and discharges in June was down 19,000 to 1.527 million. The number of private sector layoffs was down 4,000 to 1.456 million and government was down 15,000 to 71,000. The manufacturing sector has a decrease of 28,000 in layoffs and discharges and retail was down 42,000. There was a 112,000 increase in layoffs of professional and business services.
Copyright © Theresa A Sheehan