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JOLTs: Job Openings Decline Sharply

July 12, 2016
Bottom Line: The reported level of vacancies fell sharply and put the May level below its 3- and 6-month average but still slightly above its 12-month average. Despite this decline, on a trend basis job openings are still increasing at a pace somewhat faster than hires. Across all industries net hiring was still positive. The quit rate was unchanged at 2.0%, while the layoff & discharge rate was unchanged at 1.2%.The number of job openings as a % of short-term unemployed (less than 27 weeks) was little changed at 99%.

Job Openings FELL by 345k in May to 5.500 million, compared with market expectations of an increase to 5.650 million. Government job openings ROSE by 8k. Consequently, private sector job openings FELL by 353k. Over the past 12 months, there were 114k more job openings and they are now 843k above their March 2007 pre-recession peak level.

Job Hires FELL by 49k in May to 5.036 million. Over the past 12 months, there were 75k more job hires, still 433k below their November 2006 pre-recession peak level.

Job Separations FELL by 63k in May to 4.952 million. Over the past 12 months, there were 83k more job separations

The Hires to Job openings ratio ROSE by 0.05 points from 0.87 to 0.92 but is still modestly below its 12 month average of 0.95.

The Number of Unemployed to Job openings ratio STAYED flat at 1.35 and is modestly below its 12 month average of 1.45. This ratio has been declining since its July 2009 peak of 6.7 amid some volatility.
Article by contingentmacro