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Sharp Job Openings Drop Another Signal Of Labor Market Loosening

US DATA

The JOLTS job openings figure of 8.733mln badly missed expectations (9.3mln) in October, with September revised lower (9.35mln from 9.553mln).

  • This was the biggest monthly drop since May 2023 and marks the lowest level of job openings since March 2021, with the ratio of openings/unemployed dropping to 1.34, the lowest since Aug 2021.
  • The closely eyed quits rate remained steady for the 4th consecutive month at 2.3% /2.6% overall/private sector respectively.
  • Notable reductions in job openings were in health care and social assistance (-236k), finance and insurance (-168k), and real estate and rental and leasing (-49k); information saw a rise (+39).
  • Overall the report signals that labor market conditions continue to loosen - a key component of the progress the FOMC needs to see before more clearly signalling that it's done tightening. While of course Friday's payrolls data for November carries more weight, expect this data point to come up at next week's post-meeting press conference.

Source: BLS, MNI

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The JOLTS job openings figure of 8.733mln badly missed expectations (9.3mln) in October, with September revised lower (9.35mln from 9.553mln).

  • This was the biggest monthly drop since May 2023 and marks the lowest level of job openings since March 2021, with the ratio of openings/unemployed dropping to 1.34, the lowest since Aug 2021.
  • The closely eyed quits rate remained steady for the 4th consecutive month at 2.3% /2.6% overall/private sector respectively.
  • Notable reductions in job openings were in health care and social assistance (-236k), finance and insurance (-168k), and real estate and rental and leasing (-49k); information saw a rise (+39).
  • Overall the report signals that labor market conditions continue to loosen - a key component of the progress the FOMC needs to see before more clearly signalling that it's done tightening. While of course Friday's payrolls data for November carries more weight, expect this data point to come up at next week's post-meeting press conference.

Source: BLS, MNI