After surging in June, job openings were roughly unchanged in July. The high level of openings suggests hiring should remain strong over the next few months even after the slowdown in the August payrolls report.
Slowdown in August Payrolls Should be Short-Lived
- The number of jobs available at month-end fell a touch in July, although the openings rate remained unchanged at 3.3 percent. With the number of jobs available still near a 13-year high, the slowdown in net hiring exhibited in the August payrolls report is likely to be short-lived.
- Quits edged up in July, another sign of households’ growing confidence in the labor market
Cautious Employers or Skills Mismatch?
- Gross hiring has risen at a much slower rate than openings in recent months. The gap suggests employers remain cautious in hiring decisions and are taking their time filling jobs. However, a lack of a commensurate pickup in hiring over the next few months would be another sign of structural mismatch in the labor market, which would be little served by the blunt instruments of monetary policy.
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