The latest Job Openings and Labor Turnover Survey (JOLTS) showed that job openings rose from 7.7 million in July to 8 million in August. The hiring rate fell to 3.3%, which is the lowest level since 2013 not including COVID. The quit rate also fell to 1.9%, suggesting there is less poaching from other companies and fewer people feel confident about finding new employment.
What’s the bottom line? While the increase in job openings was unexpected and above estimates, the total may be weaker than the headlines suggest. The rise in remote work has led to job listings being posted in multiple states more frequently.
Plus, the low hiring and quit rates do suggest some labor sector softness, which was also reflected in the latest Job Cuts report from Challenger, Gray & Christmas. Hiring announcements fell to their lowest year-to-date level since 2011.