JOLTS: Openings Sharply Lower As Quits Drop

Bottom Line:  The Job Openings Layoffs and Turnover Survey showed sharply lower job openings in July and negative revisions to prior data. Moreover, the quit rate continued to trend lower, following the trend in openings. While the level of openings remained historically high, still above pre-pandemic levels, the quit rate (a metric often mentioned by Fed Chair Powell) was nearly back to pre-pandemic levels. While layoffs and discharges remain lower, this report showed continued cooling in the labor market tightness.  Looking through the sectors, we see sharp declines in job openings in leisure and hospitality and manufacturing. Healthcare and social assistance jobs remain the only sector where job openings have eased only slightly, and the trend in hiring is still to the upside.  Overall, while openings are structurally higher in this cycle relative to total employment, they are firmly trending lower, suggesting the historically tight labor market is slowly slackening.