The Job Openings and Labor Turnover Survey (JOLTS) released this morning by the Bureau of Labor Statistics (BLS) topped expectations and kicked off a busy week of jobs data.
The mid-morning report showed the number of job openings ticked slightly higher in May, to 8.1 million from 7.9 million in April. The April number was revised lower by 140,000 from its initial release last month. The data also revealed that the job openings rate ticked higher to 4.9% in May from 4.8% in April.
The JOLTS number for May beat economists' expectations. According to Comerica, job openings were estimated to decline to 7.9 million.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Job openings were slightly higher than expected in May, though the upbeat message was partially offset by downward revisions to April's openings," said Bill Adams, chief economist at Comerica.
Adams notes that the JOLTS data gives context to Wall Street, allowing it to "understand why the job market is doing what it's doing. That context shows that the gradual slowdown in U.S. job growth over the last few years is due to a much bigger slowdown in labor market churn, meaning fewer people quitting jobs and being hired by other employers."
The economist adds that slowing wage growth – a measure of inflation – can be attributed to the slowdown in the job market, since "getting a new job is a big driver of wage growth."
Job openings data hits ahead of June jobs report
The next big economic report is the Employment Situation Summary – also known as the jobs report or nonfarm payrolls report – which will be released by the Bureau of Labor Statistics at 8:30 am Eastern this Friday.
"The jobs report gives us a comprehensive look at the labor market, which is ultimately what fuels consumer spending," writes Dan Burrows, senior investing writer at Kiplinger, in his feature "When Is the Next Jobs Report?". "Recall that consumer spending accounts for about two-thirds of all U.S. economic activity, and you can see why the jobs report has always been front and center."
More recently, jobs data and wage pressures have made the Federal Reserve anxious about cutting interest rates. "Cut too soon, with a healthy economy and labor market as the backdrop, and inflation could accelerate again, the thinking goes.," Burrows adds.
According to CME Group's FedWatch Tool, futures traders are currently pricing in a 63% chance the Fed will issue its first quarter-point rate cut in September, up from 47% one month ago.
Related Content
-
Donating Complex Assets Doesn't Have to Be ComplicatedIf you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Travel trends you can expect this summerThe Kiplinger Letter Domestic trips will trump foreign travel amid economic uncertainties, though some costs are down.
-
Donating Complex Assets Doesn't Have to Be Complicated
If you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
What's Next for Stocks After a Chaotic SpringA chaotic tariff policy buffets investors looking for clarity on the economy and inflation.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term CareMany people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Where to Invest in an Uncertain MarketIn an uncertain market, you can still pocket juicy payouts ranging from 4% to 14%, depending on risk.
-
My First $1 Million: Events Industry CEO, 65, Northern New JerseyEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Stock Market Today: Investors Look on the Bright SideA generally good week closes on another positive note, as investors, traders and speculators look for fresh catalysts.
