U.S. job openings climb 10.3 percent in July; hires tumble 17.0 percent

The Job Openings and Labor Turnover Survey (JOLTS) published by the Labor Department on Wednesday revealed a 10.3 percent m-o-m climb in the U.S. job openings in July after a revised 11.7 percent m-o-m surge in June (originally a 9.6 percent m-o-m jump).

According to the report, employers posted 6.618 million job openings in July compared to the June figure of 6.001 million (revised from 5.889 million in the original estimate) and economists’ expectations of 6.000 million. The job openings rate was 4.5 percent in July, up from an upwardly revised 4.2 percent in the prior month. The report showed that Job openings rose in a number of industries, with the largest gains in retail trade (+172,000 jobs), health care and social assistance (+146,000), and construction (+90,000).

Meanwhile, the number of hires tumbled by 17.0 percent m-o-m to 5.787 million in July from a revised 6.970 million in June. The hiring rate decreased to 4.1 percent in July from a revised 5.1 percent in June. The hires level declined in a number of industries, with the largest fall in accommodation and food services (-599,000), followed by other services (-143,000), and health care and social assistance (-137,000). At the same time, hires increased in federal government (+33,000), largely because of Census hiring, as well as in real estate and rental and leasing (+26,000).

The separation rate in July was 5.007 million or 3.6 percent, compared to 4.899 million or 3.6 percent in June. Within separations, the quits rate was 2.1 percent (+0.2 pp m-o-m), and the layoffs rate was 1.2 percent (-0.2 pp m-o-m).

The changes in the labor market reflected an ongoing resumption of economic activity that had been curtailed due to the coronavirus (COVID-19) pandemic and efforts to contain it, the report noted.