U.S. net job openings rate likely to have remained solid

The JOLTS report is set to be released this week. In August, the job openings rate continued to stay at a record high 4 percent as the level of openings dropped just slightly. On a year-on-year basis, postings had risen 10.8 percent. The increased level of job openings at the end of last month highlights that the September drop in payrolls was due to the recent hurricanes and that the demand for labor is holding up.

In August, turnover was lower, with both gross hires and separations dropping over the month. Separations were dragged down by fewer layoffs, but also fewer workers quit their job. The quits rate has remained within the band of 2.1-2.2 percent in 2017, in line with the highs of the previous cycle.

“The higher rate of workers quitting should put some modest upward pressure on wages as jobs switchers tend to see stronger earnings growth”, noted Wells Fargo in a research report.

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