The Bureau of Labor Statistics (BLS) released the July 2022 Job Openings and Labor Turnover Survey (JOLTS report) today.
**The number of job openings was little changed at 11.2 million on the last business day of July, the U.S. Bureau of Labor Statistics reported today. Hires and total separations were little changed at 6.4 million and 5.9 million, respectively. Within separations, quits (4.2 million) and layoffs and discharges (1.4 million) were little changed.** [end quote]
The number of unemployed was 5.7 million in July so there were almost 2 job openings for every unemployed person. To be counted as “unemployed,” a person must have actively sought a job in the past month. People who aren’t seeking jobs aren’t counted as unemployed.
Unemployment Level/Job Openings: Total Nonfarm is the lowest on record, which goes back to 2020.
Initial unemployment claims ticked up a hair but is still very low.
In such a tight job market, employers will need to raise wages to get and keep employees. That’s inflationary. The Fed will have to raise the fed funds rate to slow the economy. Such a strong report will make the Fed comfortable that they have plenty of leeway to raise.
The stock market tanked just after the report came out.