U.S. Job Openings Hit Record in December Amid Tight Labor Market
(Bloomberg) -- U.S. job openings rebounded, reaching a record in December as the rate of those leaving jobs held steady, underscoring robust demand for workers.
The number of positions waiting to be filled rose by 169,000 to 7.34 million, from an upwardly revised 7.17 million in the prior month, according to the Labor Department's Job Openings and Labor Turnover Survey, or JOLTS, released Tuesday. The quits rate remained at 2.3 percent, indicating confidence that job prospects remain strong.
Key Insights
- The record number of open jobs shows employers are still struggling to find workers, with little reprieve in sight. While the latest data are for December, the January jobs report on Feb. 1 showed surprising strength in payrolls and continued wage gains.
- The quits rate held steady as 3.48 million Americans left their jobs, the fourth straight decline though still near the record in August. Federal Reserve policy makers watch the rate for signs of upward pressure on worker pay that may feed into inflation.
- Job postings exceeded the number of unemployed people by more than 1 million for a third month, though the gap narrowed from the prior month. More job openings than unemployed Americans points to a strong labor market, boding well for worker pay.
What Our Economists Say...The December JOLTS report confirms that labor-market conditions remain tight. Worker shortages have persisted, which should lead to firmer wage pressures and intensifying inflation later this year. Under these conditions, Bloomberg Economics expects the Fed to raise the target for the federal funds rate two more times in the second half of 2019.-- Tim Mahedy and Carl Riccadonna, Bloomberg Economics Read more for the full reaction note. |
Get More
- Hiring increased to 5.91 million while separations fell to 5.55 million.
- Categories showing increases in openings included construction, health care and social assistance, and accommodation and food services.
- Although it lags a month behind other Labor Department data, the JOLTS report adds context to monthly employment figures by measuring dynamics such as resignations, help-wanted ads and hiring.
To contact the reporter on this story: Katia Dmitrieva in Washington at edmitrieva1@bloomberg.net
To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Jeff Kearns
©2019 Bloomberg L.P.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
-
Medicine Pricing: Where Must Profit Stop?
India must confront excessive margins, hidden incentives and regulatory gaps that threaten the integrity of medicine.
