JOLTS: Openings Drop Sharply, Quit Rate Ticks Higher

Bottom Line:  The Job Openings Layoffs and Turnover Survey showed lower-than-expected job openings in February, with openings falling below 10 million and hitting their lowest level of this cycle. Moreover, there were downward revisions to previously reported data. Openings were lower across key sectors, including from lower-paying sectors like leisure and hospitality to higher-paying ones like health care. Construction was the notable exception, as non-residential hiring remained strong. The quit rate, an indicator of how sure employees are about their ability to get new jobs and often cited by Fed Chair Powell as a sign of labor market tightness, rose slightly after hitting a two-year low. Furthering the notion that the labor market is slowly loosening, the ratio of openings to hires continues to top out. Overall the trend in early 2023 turned towards a modest easing of the historic labor market tightness that has frustrated monetary policymakers, but there was still a long way to go.