Job opening reached a record high in July, according to the JOLTS report released on Wednesday. Analysts at Wells Fargo point out the data signals that labor demand is no the current problem in the job market.
Key Quotes:
“The latest job openings data from the JOLTS report, however, suggest that despite these fears, labor demand remains quite strong. Job openings at the end of July climbed to yet another record high, reaching 10.93M.”
“JOLTS data continue to suggest that the labor market is tighter than conventional measures of slack indicate. In July, the number of unemployed workers per job opening fell to 0.79 from 0.93 and is now lower than at any point during the past cycle. The share of workers voluntarily leaving their job also remains elevated relative to the unemployment rate. That comes despite the unemployment rate itself looking favorable compared to labor force participation.”
“While the Fed may be concerned about the near-term outlook for the labor market following Friday's August jobs report, the labor market by many measures remains tight.