- Jeremy Schwartz, an associate at Credit Suisse
The number of job openings in the US dropped in June from the highest level on record, but remained at a level indicating robust demand for workers. Job openings declined to 5.25 million in June, compared with a record 5.36 million in May, the Labor Department's Job Openings and Labor Turnover Survey showed. Hires rose to the highest level of the year at 5.12 million, while the number of Americans voluntarily quitting their jobs increased to 2.75 million from 2.73 million the preceding month. The number of voluntary quits typically rises when people are confident about employment prospects. The key jobs report, which was released earlier this month, showed the jobless rate remained at 5.3% in July. Nonfarm payrolls surge a seasonally adjusted 215,000 in July and 231,000 the previous month. Both reports are closely watched by Fed policy makers. Chairwoman Janet Yellen said the rate of voluntary quitting is a key gauge of workers' confidence in the nation's economy. Meanwhile, the share of Americans participating in the labour force were at 62.6% in July, matching the lowest level since 1977, a possible sign there is a mismatch between job openings and job seekers.
In the meantime, investors are starting to push back expectations for the Fed to hike interest rates in September as the rapidly weakening Yuan has stoked concerns about China's economic growth and global inflation expectations.
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