US job openings slide for the first time in 6 months in August – and more people quit than ever

A man hands his resume to an employer at the 25th annual Central Florida Employment Council Job Fair at the Central Florida Fairgrounds.

US job openings dropped to 10.4 million from 11.1 million in August, according to JOLTS data published Wednesday.
The reading missed the median estimate of 10.9 million openings and snapped a five-month streak of record highs.
The report also shows openings continuing to exceed workers and hiring slowing sharply.

Job openings fell for the first time in six months as the labor market’s recovery slumped in August.

Openings fell to 10.4 million from 11.1 million, according to Job Openings and Labor Turnover Survey, or JOLTS, data published Tuesday. Economists surveyed by Bloomberg expected openings to drop to 10.93 million. The reading marks the first decline since December 2020.

The report signals the labor shortage still going strong in August as the Delta wave intensified. Openings first shot higher through the spring as businesses struggled to attract workers. The labor shortage quickly led some firms to raise wages, while others waited for the virus threat to fade. And while job creation boomed through the summer, openings kept rising to fresh records.

August payroll growth shows Delta’s impact on job creation. The US economy added just 366,000 jobs that month, down from the 1.1-million-payroll gain seen in July and less than half the median forecast. The Delta variant was now officially hampering the hiring recovery, and September gains weren’t any better. Data out Friday showed the US creating just 194,000 payrolls last month, marking the smallest one-month gain of the pandemic era.

The August JOLTS data suggests labor demand eased amid the hiring slowdown. The worker-to-opening ratio tells a similar story. There were roughly 0.8 available workers for every job opening in August, matching the July reading and ending a steady decline. Readings below mean there are more listings than workers to fill them, and the ratio first fell below 1 in June.

Typically, an abundance of openings comes late in economic expansions. Yet the extraordinary amount of unfilled postings pulled the ratio below zero far more quickly than in past recoveries.

This story is breaking, check back soon for updates.

Read the original article on Business Insider

Leave a Comment