There were slight upward revisions to last month’s large sequential drop in job openings and June saw a slight MoM gain in openings, but total openings are below the all-time high set in the month of April. The total separations rate which includes all departures from a given job regardless of cause ticked down to the bottom of its two-year range.

Relative to employment as a whole, the openings rate ticked up MoM but still sits comfortably below May’s high water mark. As is typical, the private openings rate remains above the total rate due to lower government openings, but both remain in their solid upward trend as labor markets tighten.

Despite wage growth acceleration in average hourly earnings, the employment cost index, the Atlanta Fed Wage growth tracker, and other measures, the quits rate remains much lower than would be predicted by the openings rate.

The best news from the June JOLTS report was a series low for the layoff and discharge rate, which matched its lowest levels recorded from back in 2013. Private layoffs and discharges are above that level, but sitting comfortably in the bottom end of their all-time range at 1.3%.

The South Census region recorded a new all-time low in its layoff rate, while other regions saw similarly low levels. Finally, we note that despite continued employment growth, wage growth, and steady labor demand the quit rate by industry has mostly flat-lined among low pre-requisite industries. As shown below, only the Food Services quit rate continues to trend higher.

 

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