JOLTS: continued strength in the labor market - Nomura

Analysts at Nomura explained today's key data from the US.

Key Quotes:

"JOLTS: While total vacancy posting decreased, May Job Openings and Labor Turnover Survey (JOLTS) points to continued strength in the labor market as quits remain elevated and job openings stay near historical highs. Job openings in May fell 301k to 5666k from a downwardly revised 5976k in April (originally reported as 6044k), which is still a high reading by historical standards. The industry composition of job openings was relatively mixed. 

On the one hand, accommodation & food services, which increased vacancy postings by 104k in April, saw a decline of 6k in May. Professional & business services (-57k), health care & social assistance (-49k) and financial activities (-56k) also displayed some weakness. On the other hand, job openings in retail trade rose 72k, the most since January 2016. Elsewhere, voluntary quitters increased 177k to 3221k, with the quits rate increasing 0.1pp to match the post-financial crisis high at 2.2%. An elevated level of quits suggests labor demand remains strong. The hires rate increased 0.2pp to 3.7%, driven by a sharp increase in the number of hires within professional & business services (121k) as well as other services (78k). The layoff and discharge rate remained unchanged at 1.1%, near historical lows, pointing to healthy labor market conditions."