More Americans quitting jobs as labor market streng

There was more help wanted in December. “Workers see the labor market as strong enough that they can quit their job in search of a new and, presumably, better paying one”.

“If the labor market is tightening, can the economy really be faltering?” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania.

The increase lifted the jobs openings rate to 3.8 percent from 3.6 percent in November.

Companies posted almost 5% more job openings, 5.6 million, that’s the most since July.

In a third report on Tuesday, the Commerce Department said wholesale inventories dipped 0.1 percent in December after dropping 0.4 percent in November.

Could this popular “Eat, Pray, Love” trend be inadvertently encouraging so many people to up and leave their jobs and travel? “We expect that wage growth will continue to move up gradually, helping core inflation return toward target once the headwinds from lower import prices subside”. Although it lags the Labor Department’s other jobs figures by a month, Federal Reserve Chair Janet Yellen follows the report as a measure of labor-market tightness and worker confidence.

The number of people hired increased to 5.36 million from 5.26 million, while the hiring rate was little changed at 3.7%. And with the U-3 unemployment rate at 4.9% – the Fed’s estimate of full employment – this inflation-related data is even more crucial. After lifting its benchmark interest rate in December for the first time in nine years, the Fed is weighing another rate hike in March but overseas weakness and volatile stocks are giving Fed officials pause.

Since job openings are back to pre-recession levels, Naroff thinks employees are going to have to work harder to attract new workers, and pay more to remain competitive.

Of particular significance is the fact that job gains over the last three months are occurring in the most cyclically sensitive industries: construction and more surprisingly, manufacturing.