Job Openings Fall, Separation Between Openings And Hires Still Wide

Strains in the labor market eased in November as the number of job openings fell to 6.888 million against an upwardly revised 7.131 million in October.

Despite November's decline, the separation between openings and the number of unemployed actively looking for work remains very wide, at 870,000 in November's data though down from last year's record in August of 1.096 million. Openings moved ahead of the unemployed in March last year for the first time in 19 years of records. Given the sharp rise of unemployed looking for work in last week's employment report for December, at 6.294 million from November's 6.018 million, the separation between openings and unemployed may well narrow further in next month's JOLTS report.

The separation between openings and hirings also remains very wide, at 1.178 million, but is down from a 1.387 million record peak in August last year. This comparison first broke over 1 million in March last year.

The number of quits in this report had been moving higher in an indication that workers were growing more confident and were on the hunt for higher pay. But quits in today's report, extending November's theme of easing pressure, fell to 3.407 million from 3.519 million.

The rise in the unemployed is a major plus for the economy, suggesting that discouraged workers, seeing plenty of help-wanted signs, are back pounding the pavement. And though a decline in job openings in this report isn't really welcome, it does, along with the decline in quits, ease strains in the labor market, in turn pushing back wage-inflation risk and perhaps helping to slow the Federal Reserve's rate-hike plans.