U.S. job openings drop in December, quit rate likely to break out higher in 2018

Job openings in the U.S. dropped in the month of December from an upwardly revised level recorded in November. Hires also dropped but the number of quitters increased, implying increase in sentiment in the job market, noted Wells Fargo in a research report.

At the end of 2017, there were 5.81 million vacant jobs, down from November’s 5.98 million. The recent moderation comes after a sharp run-up over the initial three quarters of 2017. October might have been the cycle high water mark, as the trend in vacancies seems to be turning over. Hires have yet to show much of a shift in trend and this will be closely monitored in coming months, stated Wells Fargo.

Turnover rose a bit in December, which possibly aided with some of the upward pressure on wages in the January jobs report. The increase in total separations came as more workers quit their jobs, the biggest one month exodus of the cycle. The quit share of total employment rose but continued to be stuck in its 2.1-2.2 percent range held all of 2017.

“Survey measures of confidence in the job market suggest the quit rate should break out higher in 2018”, added Wells Fargo.

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