Job Openings Hold at 8.8M in November

The number of job openings was basically unchanged as we headed in December, according to the latest data from the Bureau of Labor Statistics.

• The number of job openings changed little at 8.8 million on the last business day of November, down slightly from the 8.85M reported in October but the lowest level since March 2021.

• Job openings decreased in transportation, warehousing, and utilities (-128,000) and in federal government (-58,000).

Quits. The all-important quits category fell to 3.47M in November, down 4.3% from October and the lowest level since February 2021.

• The number of quits decreased in professional and business services (-77,000) and in educational services (-23,000).

• The number of total separations in November decreased to 5.3 million (-292,000), and the rate was little changed at 3.4 percent.

Analysis. Catherine Campbell, columnist at Washington Post, said on X that this report could be more proof of the Feds success. “# of unemployed workers per job vacancy is about back to where it was pre-pandemic. I was dubious when the Fed said it hoped to cool the labor market purely by reducing excess job openings, rather than increasing layoffs/unemployment…but so far seems to have happened.”

BOTTOM LINE: While job openings and quits fell to two-year low they are still well above their pre-pandemic levels. However, as Campbell notes, the number of unemployed workers per job vacancy is back to a normalized level. If that number continues to dip the Fed could be compelled to start looking at stimulative measures.