The latest Job Openings and Labor Turnover Survey (JOLTS) showed that job openings contracted to 8.488 million in March, down from 8.813 million in February and well below estimates. The hiring rate fell from 3.7% to 3.5%, while the quit rate fell from 2.2% to 2.1%.
What’s the bottom line? Job openings have reached their lowest level since March 2021, and are now well below the high of 12 million hit in 2022, suggesting some softness in the labor sector. Plus, the quit rate is at the lowest level since 2018 other than COVID. This also shows some labor sector weakness, as a lower quit rate suggests less poaching from other companies and fewer people feeling confident about finding new employment.