JOLTS Report: U.S. Job Market Remains Tight
In the first of four major jobs reports this week, the Bureau of Labor Statistics reported November job openings fell at a slower-than-expected pace, reflective of a continued tight labor market.
The monthly Job Openings and Labor Turnover Survey—JOLTS—reported November job openings were little changed at 10.5 million, higher than consensus expectations (10.1 million). The rate was unchanged at 6.4 percent but was 0.9 percentage points lower than its peak in March 2022. Job openings increased in professional and business services (+212,000) and in nondurable goods manufacturing (+39,000). The number of job openings decreased in finance and insurance (-75,000) and in federal government (-44,000).
Over the month, the number of hires and total separations changed little at 6.1 million and 5.9 million, respectively. Within separations, quits (4.2 million) and layoffs and discharges (1.4 million) changed little.
Job openings continued to well outpace hires. In November, the number and rate of hires changed little at 6.1 million and 3.9 percent, respectively. Additionally, total separations changed little at 5.9 million, and the rate held at 3.8 percent. The number and rate of quits were little changed at 4.2 million and 2.7 percent, respectively. Layoffs and discharges changed little at 1.4 million, and the rate remained at 0.9 percent. Layoffs and discharges increased in finance and insurance (+19,000).
“The ratio of open jobs to each unemployed person remained steady at 1.7,” said Odeta Kushi, Deputy Chief Economist with First American Financial Corp., Santa Ana, Calif. “That is better than the nearly 2-1 levels seen in July, but still far above 1.2 jobs per unemployed person that characterized the pre-pandemic years.”
More jobs reports come out Thursday, with ADP, Roseland, N.J. issues its monthly National Employment Report and the Labor Department issues its weekly Initial Claims report. On Friday, BLS issues its December Employment report. Mortgage Bankers Association Chief Economist Mike Fratantoni will provide commentary and analysis on Friday’s jobs report in the Monday, Jan. 9 edition of MBA NewsLink.
