Job Openings Remain High, But Easing

The level of job openings remains very high but is easing, to a lower-than-expected 7.323 million in May with April revised sharply lower to 7.372 million. Hires, however, got a sharp upward revision to April, now at 5.991 million, though May came in much lower at 5.725 million and in line with that month's soft showing for nonfarm payroll growth. The spread between openings and hires is at 1.598 million, up from 1.381 million in April but still down from roughly 1.800 million levels late last year and early this year.

Quits are not showing new traction, at 3.425 million versus 3.516 million in April to keep the quits rate where it has been all year, unchanged at a moderate 2.3 percent. A moderate quits rates suggests workers are not shifting to higher paying jobs which for Federal Reserve policy makers points to available capacity in the labor market and lack of pressure on wages.

Today's report is consistent with easing levels of stress in the labor market in results that are not likely to stand in the way of a possible rate cut at the month-end FOMC.