Job Openings Fall to Lowest Level in 2.5 Years
The latest job openings and labor turnover summary (JOLTS) report showed that job openings fell to their lowest level in 2.5 years in October from September's downwardly revised level. Vacancies dropped to 8.733 million, below the expected 9.300 million vacancies.
From the press release:
The number of job openings decreased to 8.7 million on the last business day of October, the U.S. Bureau of Labor Statistics reported today. Over the month, the number of hires and total separations changed little at 5.9 million and 5.6 million, respectively. Within separations, quits (3.6 million) and layoffs and discharges (1.6 million) changed little. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, and by establishment size class.
Background on JOLTS (Job Openings and Labor Turnover)
The JOLTS report is a monthly survey of job openings, hiring, and job separations (quits, layoffs, discharges) released by the BLS. Unlike the unemployment rate that measures the supply side of the labor market, JOLTS data helps gauge labor demand.
The chart below shows the monthly data points of the four components of the JOLTS series. They are quite volatile, hence the inclusion of six-month moving averages to help identify the trends. The moving average for openings was above the hires levels for over five years starting in 2015, as seen in the chart below. The openings MA briefly dipped below the hires for two months (May and June 2020), only to climb above once more in July 2020. Over the last year, job openings, hires, and quits have all been trending down with job openings moving downwards the fastest. During that same time, layoffs and discharges have been very slowly trending up.
For comparison, here is the monthly BLS Employment Situation Summary charted with JOLTS data:
In October, there were 6.506 million unemployed workers and 8.733 million job openings. This equates to 1.34 jobs available per unemployed worker in October.