The latest Job Openings and Labor Turnover Survey (JOLTS) showed that job openings fell to 7.443 million in August, which was below forecasts and well below the high of 12 million hit in 2022. The quit rate remained at a low 1.9%. A low quit rate suggests there is less poaching from other companies and fewer people feel confident about finding new employment.
Regarding unemployment, 216,000 Initial Jobless Claims were filed in the latest week, marking a decline of 12,000 from the previous week. Plus, 1.862 million people continued to receive benefits after filing their initial claim. Continuing Claims have now topped 1.8 million for 21 consecutive weeks.
What’s the bottom line?
We continue to see less hiring, fewer people quitting their jobs, and elevated continuing unemployment claims. Labor sector reports are crucial to the Fed as they weigh monetary policy and further rate cuts, given their dual mandate of price stability and maximum employment.