U.S. job openings surge 9.6 percent in June; hires decrease 7.0 percent

The Job Openings and Labor Turnover Survey (JOLTS) published by the Labor Department on Monday revealed a 9.6 percent m-o-m jump in the U.S. job openings in June after a revised 7.5 percent m-o-m surge in May (originally an 8.0 percent m-o-m climb).

According to the report, employers posted 5.889 million job openings in June compared to the May figure of 5.371 million (revised from 5.397 million in the original estimate) and economists’ expectations of 4.910 million. The job openings rate was 4.1 percent in June, up from an unrevised 3.9 percent in the prior month. The report showed that job openings rose in a number of industries with the largest increases in accommodation and food services (+198,000 jobs), other services (+69,000), and arts, entertainment, and recreation (+34,000), but decreased in construction (-70,000) and in state and local government education (-26,000).

Meanwhile, the number of hires fell by 7.0 percent m-o-m to 6.696 million in June from a revised 7.199 million in May. This was the second-highest level in series history (the series high occurred in May 2020). The hiring rate decreased to 4.9 percent in June from a revised 5.4 percent in May. The hires level declined in a number of industries, with the largest fall in other services (-326,000), followed by health care and social assistance (-282,000), and construction (-181,000). These declines, however, were partially offset by increases in professional and business services (+255,000), accommodation and food services (+78,000), and state and local government, excluding education (+30,000).

The separation rate in June was 4.758 million or 3.5 percent, compared to 4.236 million or 3.2 percent in May. Within separations, the quits rate was 1.9 percent (+0.3 pp m-o-m), and the layoffs rate was 1.4 percent (flat pp m-o-m).

The changes in the labor market reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus pandemic and efforts to contain it, the report noted.