Job openings drop more than expected

The number of job openings in the U.S. fell slightly in June but remained at a level suggesting strong demand for workers.

At the end of the month, openings were 5.2 million, roughly flat from May, according to a news release. That helped boost the hires rate for all industries to 3.7 percent, matching its highest since November 2007 and falling just short of the pre-recession average.

There have been 5.25 million job openings, down from 5.36 million in Might, whereas the variety of employed rose to five.

Both figures are pretty close to where they were the last time the Federal Reserve began a rate-hike cycle. Within separations, those who quit their job made up 1.9 percent for the third month in a row. “In other words, labor demand is still rising very rapidly, and is hugely elevated relative to the unemployment rate”. Quitting is considered a barometer of worker confidence in the ability to get another job.

In recent months, the number of quits has held fairly steady and a gap between job openings and hires has opened, a mismatch that suggests employers haven’t been able to find workers with the desired skills at the salary on offer. But several consumer confidence measures taken in July found Americans anxious about the job market, so it’s possible quits will ease next month.

Added Ian Shepherdson, chief economist at Pantheon Macroeconomics: “Even after this dip, the number of openings leaped at a 20.4% annualized rate in the second quarter, to stand 11.4% higher than in June past year”.