Job Openings Unexpectedly Rise in May

The latest job openings and labor turnover summary (JOLTS) report showed that job openings unexpectedly rose in May for the first time in three months. Vacancies increased to 8.140 million in May from April's downwardly revised level of 7.919 million. The latest reading was above the expected 7.960 million vacancies.

From the press release:

The number of job openings changed little at 8.1 million on the last business day of May, the U.S. Bureau of Labor Statistics reported today. Over the month, both the number of hires and total separations were little changed at 5.8 million and 5.4 million, respectively. Within separations, quits (3.5 million) and layoffs and discharges (1.7 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 falling the fastest. During that same time, layoffs and discharges have been slowly trending up but have recently started to level off.

JOLTS Overview

For comparison, here is the monthly BLS Employment Situation Summary charted with JOLTS data:

BLS Nonfarm Jobs versus JOLTS data

In May, there were 6.649 million unemployed workers and 8.140 million job openings. This equates to 1.22 jobs available per unemployed worker in May, unchanged from April. This is the lowest ratio level since June 2021.

Job Openings Per Unemployed Worker