Job Openings, Employee Quits Continue to Fall in June
The U.S. Bureau of Labor Statistics (BLS) recently released its June Job Openings and Labor Turnover Summary. This month’s reported number of job openings fell from 11.3 million in May to 10.7 million in June.
Job opening numbers have fallen for three consecutive months. June’s decline of over 600,000 job openings is the biggest in over a year and represents a nine-month low. The largest decreases in job openings were in retail trade, wholesale trade and public education.
In addition to the continued high number of job openings, total employee quits fell from 4.3 million in May to 4.2 million at the end of June. Despite the slight decrease in total employee quits, the June report reveals that the employee quit rate held at 2.8%. Notably, the public education industry saw a slight increase in employee quits while construction decreased somewhat. June marks the 13th consecutive month that more than 4 million workers left their jobs.
Other key takeaways from the report include an unchanged hire rate despite the slight decrease in job openings. Additionally, the number of layoffs and discharges changed very little from May’s 1.4 million to June’s 1.3 million. The layoff rate remained unchanged at 0.9%.
Employees continue to leave their jobs voluntarily at record-high numbers. This trend continues as recent labor reports reveal total employment is also trending upwards generally—indicating that employees are not leaving the workforce entirely but finding new employment.
Employer Takeaway
June’s slight decrease in job openings suggests that the labor market might be easing somewhat despite growing economic pressures, such as inflation. Despite the drop in job openings, the number of openings remains high as the demand for workers outweighs supply.
As a result, employers continue to struggle attracting and retaining workers. This has resulted in increased labor costs for employers as they raise wages and offer competitive benefits and other perks to attract talent. These trends demonstrate that workers continue to feel confident enough to switch jobs for better pay and working conditions despite economic pressures like inflation.
While June’s report indicates the labor market might be easing, experts expect talent challenges to continue. As such, employers should continue to monitor employment trends to stay informed on the evolving market to stay competitive.
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