According to our analysis USDJPY and EURUSD moved 72 pips on US BLS Job Openings and Labor Turnover Survey (JOLT) data on 4 September 2024.

USDJPY (59 pips)

EURUSD (13 pips)

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Understanding the Latest Job Openings and Labor Turnover Data: Insights from July 2024

The U.S. Bureau of Labor Statistics (BLS) recently released its Job Openings and Labor Turnover Summary (JOLTS) for July 2024, providing valuable insights into the dynamics of the U.S. labor market. Let's dive into the key takeaways from this latest report to understand the current employment landscape better.

Job Openings Remain Steady

As of the last business day of July, the number of job openings in the U.S. remained relatively stable at 7.7 million. Although this figure reflects little change from the previous month, it represents a significant decrease of 1.1 million job openings compared to the same time last year. The job openings rate, which measures the number of job openings as a percentage of total employment plus job openings, held steady at 4.6%.

Breaking it down by sector, notable decreases in job openings were observed in:

• Health Care and Social Assistance: Down by 187,000

• State and Local Government, Excluding Education: Down by 101,000

• Transportation, Warehousing, and Utilities: Down by 88,000

Conversely, some sectors saw an increase in job openings:

• Professional and Business Services: Up by 178,000

• Federal Government: Up by 28,000

These figures highlight the shifting demand for labor across different sectors of the economy.

Hiring Activity

The number of hires in July remained largely unchanged at 5.5 million, with a hire rate of 3.5%. This stability suggests that employers are maintaining a cautious approach in their hiring practices, possibly due to economic uncertainties or sector-specific challenges.

However, within certain sectors, there were notable changes:

• Accommodation and Food Services: Hires increased by 156,000, indicating a robust demand for workers in this sector, potentially driven by the continued recovery in travel and dining.

• Federal Government: Hires decreased by 8,000, reflecting a slowdown in recruitment activities.

Separations: Understanding the Fluctuations

Total separations, which encompass quits, layoffs and discharges, and other separations, increased to 5.4 million in July, up by 336,000 from the previous month. The total separations rate, however, remained relatively stable at 3.4%.

Quits

Quits, often seen as a measure of workers' confidence in their ability to leave jobs for better opportunities, were unchanged at 3.3 million in July. However, this figure is down by 338,000 from July 2023, indicating a potential decrease in employee mobility or willingness to change jobs.

There was an increase in quits within the Information sector, rising by 16,000. This could signal that workers in this industry feel more confident about their employment prospects or are exploring new opportunities.

Layoffs and Discharges

The number of layoffs and discharges, representing involuntary separations initiated by employers, remained steady at 1.8 million, with a rate of 1.1%. Specific sectors did experience increases:

• Accommodation and Food Services: Up by 75,000

• Finance and Insurance: Up by 21,000

These increases suggest that while some sectors are expanding, others are adjusting their workforce needs, potentially due to shifting market conditions or internal restructuring efforts.

Other Separations

"Other separations," which include retirements, deaths, disabilities, and transfers to different locations within the same company, increased to 381,000, up by 71,000 in July. This uptick could reflect demographic shifts or changes in company policies regarding retirements and transfers.

Trends by Establishment Size

The JOLTS report also breaks down data by establishment size, offering a glimpse into how businesses of different sizes are navigating the labor market:

• Small Establishments (1 to 9 employees): These businesses saw a decrease in the quits rate and an increase in the layoffs and discharges rate, indicating potential challenges in retaining staff or a more dynamic restructuring process.

• Large Establishments (5,000 or more employees): These larger entities experienced little to no change across various metrics, suggesting a stable employment environment within big businesses.

Revisions to June 2024 Data

It's worth noting that the BLS revised its June 2024 data, with job openings revised down by 274,000 to 7.9 million and hires revised down by 93,000 to 5.2 million. These revisions underscore the evolving nature of labor market data, as new information becomes available and seasonal factors are recalibrated.

Looking Ahead

The next JOLTS release, which will cover data for August 2024, is scheduled for October 1, 2024. As we await further data, these figures from July offer a snapshot of a labor market in flux, characterized by sector-specific shifts and a cautious approach to hiring and separations. Employers and job seekers alike will benefit from staying informed about these trends as they navigate the current economic landscape.

Stay tuned for more updates and in-depth analysis of labor market conditions in the coming months!

Source: https://www.bls.gov/news.release/jolts.nr0.htm

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