U.S. employers saw record levels of job openings and workers quitting in March, pointing to intensifying labor-market tightness that will keep pushing wages higher at a rapid clip.
The number of available positions increased to 11.5 million in the month from 11.3 million in February, the Labor Department’s Job Openings and Labor Turnover Survey, or JOLTS, showed Tuesday. The median forecast in a Bloomberg survey of economists called for 11.2 million openings.
Meantime, a series high of 4.5 million Americans quit their jobs in March, in data back to 2000. The quits rate, a measure of voluntary job leavers as a share of total employment, rose slightly to 3%.
The vacancy figures suggest that employers’ needs for workers remained strong in March as employers staff up to meet solid consumer demand for goods and services. Businesses are also still struggling to recruit qualified workers, which has put upward pressure on wages and led to a surge in job openings.
There were 1.9 jobs for every unemployed worker in March, up from February. Federal Reserve Chair Jerome Powell has pointed to that figure as an indication of the tightness in the American labor market. Combined with soaring inflation, the data reinforces expectations that the central bank will be more aggressive with their monetary policy tightening in upcoming meetings, starting Wednesday.
The data come ahead of Friday’s monthly jobs report from the Labor Department, which is currently forecast to show the U.S. added 390,000 jobs in April.
What Bloomberg Economics says…
“The job openings and quits data signal that the labor market is significantly tighter than the official unemployment rate suggests… We now estimate 50-bps hikes at the May, June and July FOMC meetings, with the target rate reaching 2.5%-2.75% range by the end of the year.”
—Eliza Winger, economist
The increase in job openings was driven by retail trade and durable goods manufacturing. That echoes data from the Institute for Supply Management Monday, which found that manufacturers are still struggling to solve labor shortage issues.
Vacancies decreased in transportation, warehousing, and utilities; state and local government education; and accommodation and food services.
Quits increased in professional and business services and construction, the JOLTS data showed.
While staffing has improved for some companies, many continue to point to challenges on earnings calls. Domino’s Pizza Inc. said last week that when adding up all of the lost operating hours in the first quarter, U.S. stores were cumulatively closed for the equivalent of almost six days.
“The labor market is still very much a job seeker’s market,” Nick Bunker, economic research director at Indeed Inc., said in a note. “Something dramatic will have to happen for this to change anytime soon.”
Hires were little changed at 6.7 million in March. By industry, leisure and hospitality rose.
—With assistance from Kristy Scheuble and Reade Pickert.
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