Job Openings Continue To Edge Lower

In a trend that supports Federal Reserve doves and their efforts to cut interest rates, job openings continue to edge lower in an indication that the risk of capacity stress in the labor market is easing. Job openings totaled 7.217 million in July for the second lowest total since May last year. This is down 0.4 percent from June which has been revised sharply lower from an initial 7.348 million to 7.248 million for the third lowest total since May last year.

Relative to hires, job openings had been extending gains but not lately. Hires jumped 4.1 percent in July to 5.953 million to narrow the spread with openings to 1.264 million which is the lowest spread in more than a year. Hires had been well below job openings on a year-on-year basis but are suddenly ahead, up 2.1 percent versus a 3.0 percent openings decline.

Yet quits, in a counter signal of labor market strength, rose sharply in the month to 3.592 million with the quits rate up 1 tenth to 2.4 percent. Federal Reserve officials track quits closely for indications of worker mobility and related wage pressure. But the rise in quits may prove only temporary given the slumping curve for openings.