JOLTs: Job Openings Increase Moderately

Bottom Line: The reported level of vacancies rose moderately and put the December level sharply above its 6- and 12-month average. On a trend basis job openings are increasing at a pace somewhat faster than hires. Across all industries net hiring was positive. The quit rate rose slightly to 2.1%, while the layoff & discharge rate fell slightly to 1.1%. The number of job openings as a % of short-term unemployed (less than 27 weeks) is now 97% vs 91% last month. Job Openings ROSE by 261k in December to 5.607 million, compared with market expectations of an increase to 5.413 million. Government job openings ROSE by 16k. Consequently, private sector job openings ROSE by 245k. Over the past 12 months, there were 730k more job openings and they are now 950k above their March 2007 pre-recession peak level. Job Hires ROSE by 105k in December to 5.361 million. Over the past 12 months, there were 122k more job hires, 108k below their November 2006 pre-recession peak level. Job Separations ROSE by 110k in December to 5.072 million. Over the past 12 months, there were 171k more job separations Workers are still quitting less than at the May 2006 pre-recession peak level. The Hires to Job openings ratio FELL by 0.03 points from 0.98 to 0.96 and is unchanged compared to its 12 month average of 0.96. The Number of Unemployed to Job openings ratio FELL by 0.07 points from 1.48 to 1.41 and is moderately below its 12 month average of 1.55. This ratio has been declining since its July 2009 peak of 6.7 amid some volatility.