US Job Openings Soar To Record High

After nearly two years of being rangebound, between 5.5 and 6 million, the BLS's JOLTS report - Janet Yellen's favorite labor market indicator- showed that in June, the number of job openings soared by 461,000 from 5.7 million to a new all time high of 6.163 million, smashing expectations of a far more subdued print of 5.75K, and resulting in a job openings rate of 4.0%, also tied for record high.

The biggest increase in job openings was in the Professional and Business Services category, which rose by 179K, Education and Health services which rose by 123K, Construction up by 62K, and Trade transportation up by 41K. Curiously, even manufacturing job openings increased by 38K in June, while Other Services and Retail job openings both declined, by 62K and 42K, respectively. ). The number of job
openings increased in the Midwest and West regions.

Now if only employers could find potential employees that can pass their drug test...

Earlier in the day, the NFIB survey report highlighted that the challenge for employers at the moment is to deliver wage gains despite less robust trends in profit. Taken from that survey: "While inflation remains low, reports of higher worker compensation continue to be strong, consisted with historically tight labor markets. Reports of increased compensation rose 3% to a net 27% . Rising compensation will attract workers back into the labor force, but it is a slow process. The frequency of reports of improved profit trends was unchanged at a net negative 10 percent reporting quarter on quarter profit improvements, historically an excellent reading and one of the best readings in this expansion. In spite of rising labor costs, owners are seeing decent bottom line performance."

So far the wage gains have yet to materialize.

Aside from the unexpected surge in job openings, the rest of the report was more subdued, with the pace of hiring actually declining from 5.459MM to 5.356MM...

... a decline in the annual growth rate from 6.2% in May to 3.5% in June. The hires rate was 3.7 percent. The number of hires was little changed for total private and for government. The number of hires decreased
for educational services (-29,000), but was little changed for all other industries. Hires decreased in the Northeast region.

Finally, the other closely watched category, the level of quits - which indicates workers' confidence they can leverage their existing skills and find a better paying job - also unexpectedly declined from 3.206MM to 3.134MM, although the June print remains just shy of recent all time highs hit last month.  The number of quits was little changed for total private and for government. Quits decreased in finance and insurance (-21,000). The number of quits was little changed in all four regions.

Separately, there were 1.7 million layoffs and discharges in June, little changed from May. The layoffs and discharges rate was 1.2 percent in June. The number of layoffs and discharges was little changed for total private and for government. The layoffs and discharges level was little changed in all industries and regions.

While traditionally the JOLTS report is roundly ignored by the market, this time someone noticed, and the USD has spiked on the news...

... sending the EURUSD to session lows.


Ghost of PartysOver ReturnOfDaMac Tue, 08/08/2017 - 11:34 Permalink

And yet none of the talking heads or politicians address the real problem as to why some many quality jobs are not filled.  PUBLIC EDUCATION!  We are creating generations of idiots.  But hey, if the Teachers Union's get what they want then all is good.  And you can account for some by the idiots who can not pass a drug test.  I suppose as long as you are stoned then your living conditions don't really y matter.

In reply to by ReturnOfDaMac

Xscream Bigly Tue, 08/08/2017 - 11:28 Permalink

If you want your 9.50 hour part time no benefits job. Step right up there are lots  to choose from.Dollar general, any fast food store, drug stores. grocery store... the list is endless. Oh yeah but you will need to work at least two of them. Then apply for Obamacare and save up for your 4k deductible. God knows what the repubs will do with health care next year. Repeal replace been hearing about the great new plan for years. We will see soon enough i guess

In reply to by Bigly

bladrnr_2019 Xscream Tue, 08/08/2017 - 11:58 Permalink

Not true at all in central Ohio. My wife is looking for part-time work. She wants to be at home when the kids get off the bus. Very few jobs are part-time, mostly full-time from her two-month search which she easily would have qualified for. She has a 2nd interview Thursday at the county's visitor's bureau. Would be perfect for her. 28 hours a week, mostly doing social media updates. 

In reply to by Xscream

junction therover Tue, 08/08/2017 - 11:16 Permalink

Plenty of jobs with near minimum wage pay, no benefits, no job security, no overtime pay, no pension and a "skinny" health insurance plan.  Plus the fact that the comatose government economists almost certainly overlook the fact that many of these job openings are just postings to attract applicants.  The jobs themselves are usually horrible, welding jobs (where you get cancer from the fumes), night shift and weekend work jobs and jobs where there is a high turnover due to real bad working conditions.  

In reply to by therover

AGuy junction Tue, 08/08/2017 - 13:08 Permalink

"Plenty of jobs with near minimum wage pay, no benefits, no job security, no overtime pay, no pension and a "skinny" health insurance plan."

FWIW:Its likely that jobs are returning as the Stock market has gone vertical again and people are saving less, feeling more confident in rising stocks & home prices. But this will only last as long as the bubble continues. We see new records in consumer debt (credit cards, auto loans, home loans, student loans). As long credit availability continues the economy and jobs will be available. That said its still just a house of cards, and just about anything can topple it.

In reply to by junction

hound dog vigilante therover Tue, 08/08/2017 - 12:24 Permalink

 Yep.  I'm calling bullshit on this one, too. I regularly apply for "open" positions that I am 2x over-qualified for, and I never even get a sniff.  Never. I am constantly hounded to drop my rate down into W-2 range (of course, because black badge/FT jobs are nonexistant) where I compete w/ barely literate non-english speaking visa surfers. Lose-lose for everyone. We are a nation of minimum wage part-time zombies... wildly over-educated yet unprepared for the menial jobs that most of us will eventually accept out of desperation & boredom.

In reply to by therover

canisdirus therover Tue, 08/08/2017 - 19:13 Permalink

As I read it, my first thought was this: "It's all lies". I have never done drugs, either.I have been hunting for my next FTE position for a bit over a month now and in spite of a few interviews (all claiming they are having a hell of a time finding people), I haven't yet received an offer. It's currently worse than the last two times I changed jobs (2007 and 2013), in spite of having 4-10 more years of experience.Most listings are unfillable (way too broad, demanding way too many skills, hoping to replace someone that was doing 4-5 jobs with a drop-in replacement), while the few that could be filled are very picky. Clearly, something is really screwed up. I've never had a job hunt take me more than a month since 2001.I laugh at the thought of how hard it will be for my current employer to replace me. It would take 6+ senior-level people in a variety of disciplines.

In reply to by therover

Seasmoke Tue, 08/08/2017 - 10:28 Permalink

Any job openings in the We Buy Gold stores ????

Another day. Another hammering. After 7 years , you would think I would get used to them by now.

Anteater Consuelo Tue, 08/08/2017 - 12:10 Permalink

Oh bullshit. Modi's Indian gold junk bonds jewelry buyupplan was announcedd 18 months ago. He's been dumping10,000,000 ozs of 24KT in the London market every fewmonths, ..but the goldbuggerer rags keep telling you the'price is being suppressed', oh bullshit. They arrested theIndian spoofers and flash crashers...the POG went DOWN!They broke up the gold price fixing syndicate in London,...the POG went DOWN! You deserve to lose if you are thatuninformed about PMs, the worst investment of 2016-17.

In reply to by Consuelo

Silver Savior Tue, 08/08/2017 - 10:33 Permalink

Job openings are not jobs! These assholes list job openings but don't fill them. Especially in higher paying jobs. It's all for show. And if they really are hiring they are so damn picky it does not matter  Give us a total reset for crying out loud. A big fucking global one. This Amazon/Walmart economy is bullshit. It does not work!

Byrond Silver Savior Tue, 08/08/2017 - 12:56 Permalink

Where I live, the county gives a $5,000 tax break off property taxes if the business hires someone on unemployment benefits for six months. So they'll snatch you up if you're on unemployment, but of course will never give you the chance to claim benefits on their dime. Well, it's possible, but it's not very possible. 

In reply to by Silver Savior

Anteater Byrond Tue, 08/08/2017 - 12:01 Permalink

Taught 2 nights a week at CC technical course,and if you teach too, you know that's 3 days aweek with prep and testing, grading and FAQs,over 16 weeks, for $2,520. That's what CC pays!I just needed the clock hours for my certificate. Now I'm looking at LEGO demonstrations, youprepare a 90-minute class, lug a mountain ofLEGOs that you have to buy all over town, setup,break down, fill in orders, report upline, and it's$75 a night. You might as well be selling Bibles! STOP THE H1Bs THAT ARE DESTROYING USA!

In reply to by Byrond

Last of the Mi… Tue, 08/08/2017 - 10:35 Permalink

Posting job openings is like me bragging about the "openings" in women's panties I could have hit. It's fun, it kills times, but in the end (pun intended) it's all bullshit.

illuminatus (not verified) Tue, 08/08/2017 - 10:40 Permalink

Hurray, now you too can get a part time job at Mc. D's. It's all good!!!!!!!!!!!!!!!!!!!!!!!

Byrond Tue, 08/08/2017 - 10:43 Permalink

Must be fake stats. They're desperate to keep the stock market from dropping. There's also all these record high (or low) stats, which of course indicates something is wrong with the methods. Whether faked on purpose or not, stats must be questined when they're essentially unique. 

gm_general Tue, 08/08/2017 - 10:49 Permalink

Is there any rule on these supposed job openings so that they are only ones available in the US? Most of the jobs my company is creating are in India, and they are firing people here and replacing them with people there. I would bet they are counting stuff like this and H1-B positions in these numbers.

Anteater moonmac Tue, 08/08/2017 - 11:48 Permalink

Yeah, no shit, I contacted all my clients and made thepoint our deliverables are much more codified andcomplete than competition, and we actually reducedour fees by 50% back in 2015. They asked me to quotea 50% additional price decrease! Then never came back!!!They were using me to shop bids against some poorschmuck from you know where. This is a H1B meltdown!So I took an on-call position flying all over the country,brutal service schedule, no overtime, for less than what Iused to make ... in 1987!! Think about the impact of thehigh-tech workers from these certain foreign countries!But no, 'it's the Muslims and Mexicans', ... not the H-1Bs!

In reply to by moonmac

Rebelrebel7 (not verified) Tue, 08/08/2017 - 10:58 Permalink

I have come to the conclusion that employers are just claiming to be hiring, and collecting information on applicants. Employers expect so much information on employees, their entire life history, social media history, their credit history, and their personal health history. It's completely unwarranted!

Byrond Rebelrebel7 (not verified) Tue, 08/08/2017 - 11:05 Permalink

I've seen this localy quite a lot. You have big businesses that keep HR looking for the perfect person for skilled jobs, yet they refrain from hiring even when someone who is more than qualified is found. HR may work with state employment departments, and interview hundreds or thousands of people for years. Temp agencies in my area are always interviewing and collecting resumes to get a pool of "applicants" for companies that are also only looking for the perfect person. Is that hiring? How would the stats interpret it? 

In reply to by Rebelrebel7 (not verified)