"It reinforces the view that the labor market is improving. It's making progress, reflecting an economy that seems to have pretty good momentum."
- Sal Guatieri, senior economist at BMO Capital Markets
According to the latest JOLTS report, job openings rose to the highest level in 13 years as employers confidence about the outlook for demand in the world's number one economy improves. The number of vacancies to be filled skyrocketed to 4.84 million in August, up from a revised 4.61 million in the previous month. Economists, however, called for 4.7 million openings. The increase in job openings adds to signs of a steady progress in the U.S. labour market. Job openings increased most among health-care providers, retailers and hotels and restaurants. They declined among construction companies and state and local government agencies. While hiring and firing cooled, fewer people quit their jobs. The hiring rate declined to 3.3% down from 3.6% in July, as employers hired 4.64 million people in August, down from 4.93 million in the preceding month. 2.47 million people leave their jobs in August, the fewest since April and down from 2.55 million a month earlier. The quits rate, which indicates the willingness of workers to leave their jobs, stood at 1.8%. It was at 2% when the last recession started in December 2007.
The JOLTS report is one of nine indicators Janet Yellen, the Fed Chief, uses to help guide monetary policy. Currently, only three measures including job openings rate, payrolls and the pace of dismissals have returned to their pre-recession levels.
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