US JOLTS data indicate that labor market slack was broadly unchanged in October

Total US job openings declined to 5.383mn in October, from an upwardly revised level of 5.534mn in September. Most of this decline was driven by professional and business services, where openings fell 137k on the month. Manufacturing openings declined 18k for the second consecutive month. 

Elsewhere, most service-providing sectors experienced modest monthly improvements in the level of openings. Relative to total employment, the job openings rate declined one-tenth to 3.6% and the hires rate was unchanged at 3.6%. Within the separations side of the JOLTS report, the total quits rate, an indicator of labor market confidence, was unchanged at 3.4% for the seventh month running. 

Finally, the ratio of unemployed job seekers to job openings edged up to 1.47 (previous: 1.43), indicating that the level of labor market slack was broadly unchanged during the month. This morning's JOLTS data confirm the recent labor market improvement evidenced by the October and November payroll reports, and provide little new signal this month. Continued job gains should lead the unemployment rate to continue to move lower, reaching the mid 4% range by the middle of next year.