Thursday, July 6, 2023: JOLTS Report – Job Openings Decreased by 496k in May, Rate Decreased Slightly to 5.9%
The number of job openings in May was 9,824,000 – a decrease of 496,000 from April’s adjusted figure of 10,320,000 – the U.S. Bureau of Labor Statistics (BLS) stated in its Job Openings and Labor Turnover Summary (JOLTS) Report for May 2023. The job openings rate also decreased to 5.9 percent, compared to 6.2 percent in April.
Note: The BLS computes the “job openings rate” by dividing the number of job openings by the sum of employment and all job openings in the month in question (i.e., all filled and unfiled jobs) and then multiplying that quotient by 100. The jobs opening rate thus provides a quick index of whether the number of new jobs is growing relative to the size of the workforce.
A smaller job openings rate is reporting that the percentage of new jobs is shrinking compared to the size of the workforce. Economists refer to that condition as a “tightening” of the workforce. Consequences of a tightening labor market are that workers have a more difficult time finding a job or the job they want, and recruiters find it easier to place candidates who have fewer alternative options.
In May, the largest decreases in job openings were in health care and social assistance (-285,000), finance and insurance (-139,000), and other services (-78,000). Job openings increased in educational services (+45,000), state and local government education (+37,000), and federal government (+24,000).
Hires, Total Separations, & Quits Up Slightly, Layoffs/Discharges & Other Separations Down a Bit
The number of hires in May was 6,208,000 (4.0 percent rate) compared to the adjusted 6,101,000 number (3.9 percent) for April. May hires increased in durable goods manufacturing (+41,000).
Total separations were up a little at 5,871,000 (3.8 percent rate) for May, compared to 5,660,000 (3.6 percent rate) for April. Within separations, quits in May were 4,015,000 (2.6 percent rate) up from 3,765,000 (2.4 percent rate) in April. May quits increased in health care and social assistance (+69,000) and in construction (+57,000).
Layoffs and discharges in May were 1,555,000, down a smidge from 1,590,000 in April. The percentage rate remained steady at 1.0. The number of other separations was 301,000 in May, down from 305,000 in April. The percentage rate remained steady at 0.2. In May, layoffs and discharges increased in retail trade (+87,000).
BLS posted interactive graphs here.
Three-Month Comparison Chart of Job Openings vs Jobs Filled
Our below table reports the number of available jobs (as taken from the revised JOLTS reports) from the last four months of available data, as revised and reflects a gentle roller coaster ride, first very slightly down and then slightly up and then slightly down again.
*January Job Openings were 10,563,000
Note: BLS scheduled the release of the June 2023 JOLTS Report for Tuesday, August 1, 2023.