US Job Openings In August Drop To Lowest This Year

New York: The decline in job openings in the US higher than projected in August to the lowest level this year and hiring activity was also slowed down from a month earlier, according to the US Labor Department report released on Wednesday.

The data report revealed that number of positions waiting to be filled dropped by 388,000 to 5.44 million (forecast was 5.80 million), from a revised 5.83 million in July, according to the Job Openings and Labor Turnover Survey.

Bloomberg reports that monthly decline was biggest since August 2015 as hiring fell to 5.21 million from 5.26 million. The hiring rate was at 3.6 percent. Some 2.98 million Americans quit their jobs, little changed from July as the quits rate stayed at 2.1 percent. Layoffs declined to 1.62 million from 1.64 million.

The number of help-wanted signs is also moving southwards. This is showing that hiring managers were more cautious even as they’re reluctant to fire workers. The latest jobs data is in sync with September figures released last week, which showed payrolls are rising at a healthy, but slower rate.

The jobs data also indicated a little change in the number of people leaving their job, keeping the quits rate steady for a third month. The measure is tracked by the US Federal Reserve Chair Janet Yellen as a gauge of workers’ willingness to voluntarily leave because they’re confident of finding better employment.

Some economists hold view that though hiring has been slowing down, the recovery in other hiring measures continues.

Indicating the unemployment rate, the latest jobs data reveals that there were 1.4 unemployed people vying for every opening in August, compared with 1.9 people when the recession began at the end of 2007.

Several key sectors such as manufacturing, construction, retail trade, business services, education and health care witnessed drop in openings. In the 12 months through August, the US economy generated a net 2.6 million jobs, representing 62.7 million hires and 60.1 million separations. Although it lags the Labor Department’s other jobs data by a month, the JOLTS report adds context to monthly payrolls figures by measuring dynamics such as resignations, help-wanted ads and the pace of hiring.