Confident US employers post more job openings in May

America had a total number of 5.4 million job openings on the last business day of May.

The Job Openings and Labor Turnover Survey, or JOLTS, adds context to monthly payrolls data by measuring dynamics such as resignations, help-wanted ads and the pace of hiring. Job cuts and layoffs ballooned 9.3 percent month over month in June, up roughly 43 percent from June 2014, according to a separate job cuts report issued by Challenger, Gray & Christmas research firm. “Remember, you have to be actively seeking employment to be counted as unemployed, thus, it is very easy to get the unemployment rate down to zero if no one is looking for a job”.

“Measures of job turnover, which tend to lead wage acceleration, were disappointing”, said Jeremy Schwartz, an analyst at Credit Suisse.

Perhaps more alarming than the number of people leaving their jobs, however, is the number of people not leaving.

About 2.7 million Americans quit jobs in May, down slightly from April but still near pre-recession levels.

The figures reported in last Friday’s jobs report are a net total: Jobs gained minus jobs lost. There was little change in the number of hires in all industries and regions over the month. This was well above the estimate of 5.03 million. The lingering gap between openings and hires is a sign of a mismatch in the jobs market. But they also may be hesitant to increase pay to attract more talented applicants.

Average hourly wages were flat between June and May at $24.95.

Quits fell in May to 2.70 million from 2.71 million in April, after having reached a seven-year high in January. Still, there are more positions open and more workers are willing to quit their existing jobs to pursue new opportunities. Over the year, quits increased in health care and social assistance and in accommodation and food services.