Job Openings Dip; Employees Retain Upper Hand For Now
In the first of four major employment reports this week, the Bureau of Labor Statistics on Tuesday reported job openings fell slightly in February, while another 4.1 percent of Americans quit their jobs—showing while employees continue to retain the upper hand in a volatile housing market, that grip could be starting to slip.
The BLS monthly Job Opening and Labor Turnover Survey, known as JOLTS, also reported the ration of available workers to job openings held at just 0.6 in February, matching last month for the lowest reading on record.
The report said job openings dipped slightly to 11.3 million on the last business day of February, down from 11.6 million in January. Hires edged up to 6.7 million, but changed little at 4.4 percent; hires increased in construction (+75,000), but decreased in information (-29,000).
Meanwhile, another 6.1 million Americans (4.1 percent) left their jobs in February. Those who outright quit their jobs totaled 4.4 million (2.9 percent) and included increases among retail trade (74,000); durable goods manufacturing (22,000); and state and local government education (14,000).
“While openings dipped, churn in the labor market generally remains higher than at any point in the past two decades,” said Sarah House, Senior Economist with Wells Fargo Economics, Charlotte, N.C. “The opening rate continues to hover near an all-time high, indicating demand for workers remains exceptionally strong. However, vacancies have been little changed the past few months, adding to signs that employers’ hiring spree may be losing steam.”
House said some moderation could be in the offing. “As an individual quits a job for a new one, it creates the opportunity for another hire during the month or a vacancy at the end of the month if not filled,” she said. “There are signs that labor demand is leveling off and we expect labor supply will continue to improve as workers are pulled back into the jobs market by ample opportunities as well as pushed by growing financial needs.”
For the 12 months ending in February, hires totaled 77.0 million; separations totaled 70.6 million, yielding a net employment gain of 6.4 million. These totals include workers who may have been hired and separated more than once during the year.
Three more employment reports will come out this week. This morning, ADP, Roseland, N.J., will release its monthly National Employment Report (8:30 a.m. ET). On Thursday (8:30 a.m. ET), the Labor Department releases its weekly Initial Claims report—last week, Labor reported initial claims for unemployment insurance fell to their lowest level since 1969.
And on Friday, BLS releases its monthly Employment Situation report for March data (8:30 a.m. ET); last month, BLS reported employers added 678,000 jobs in February. MBA NewsLink will provide coverage of the Friday jobs report in its Monday, Apr.4 edition, with commentary and analysis from MBA Chief Economist Mike Fratantoni.
