The labor market continues to send mixed signals with job openings rising and quits falling, according to the latest Job Openings and Labor Turnover Survey (JOLTS) for September.
- The number of job openings rose slightly to 8.0 million on the last business day of August, up from 7.71 million in July.
- This marks the highest level of job openings since May and exceeded economists’ expectations of a drop to 7.65 million.
Breaking It Down: The increase in job openings was driven primarily by gains in construction, which saw 138,000 more openings, and in state and local government (excluding education), which added 78,000 positions. Conversely, job openings in other services fell by 93,000, tempering the overall gains.
Separations: Despite the increase in job openings, total separations and quits declined, signaling reduced worker confidence. Total separations fell to 5.0 million, down from 5.3 million in July, the lowest level recorded since August 2020.
- The number of quits, often viewed as a measure of worker confidence in finding new employment, also dropped to 3.1 million, down from 3.24 million in the previous month, reaching its lowest level since August 2020.
What They’re Saying: The mixed report reflects a labor market that is still gradually cooling without showing signs of a sharp decline. As Ben Casselman of The New York Times noted on Twitter, “Big picture: Labor market is continuing to cool, but doesn’t seem to be falling off a cliff.”
Bottom Line: This balance between rising job openings and decreasing worker mobility raises questions about the dynamics at play in the job market, as employers maintain demand for labor, but workers appear more hesitant to make career moves amid ongoing economic uncertainty.
