- Joel Naroff, economist at Naroff Economic Advisors
The number of job openings in the world's number one economy rose to the highest level in 13 years in June, a positive sign that indicates the nation's economy as well as the job market continue to strengthen. Employers posted as many as 4.67 million jobs, up 2.1% from May's reading of 4.58 million, according to the Labor Department's data. At the same time hiring hit the highest level since February 2008. Nevertheless, the hiring rate has not increased over the past year as rapidly as the number of positions being advertised. Job openings have soared 17.6% during the past 12 months, while hiring has surged 9.3% during the same period, indicating a mismatch in the jobs market. Meanwhile, the number of jobless Americans competing for each open job position fell to a six-year low, pointing to a labour market tightening that could pave the way for faster wage growth. The share of unemployed job seekers declined to 2.02 in June compared to 2.14 in May, reaching the below average level from 2002 to 2006. On top of that, 2.53 million Americans quit a job in June, up from 2.49 million in May and the highest level since June 2008, pointing to workers' confidence of finding a new better-paying job on the market.
The JOLTS report is considered to be a key measure to assess the jobs market health, and thus is one of the data being closely watched by Fed Chairwoman Janet Yellen and other policy makers at the U.S. central bank as they ponder the future course of monetary policy.
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