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10 Aug 2016
US: Quits rate likely to rise in JOLTS report – Wells Fargo
Research Team at Wells Fargo Securities, notes that the US Jolts job openings in May slipped slightly from April’s record high while hiring also declined.
Key Quotes
“May’s JOLTS report was consistent with the weak jobs report in May, which we know was much stronger in June. While the information reported in JOLTS is overshadowed by the next months’ job report, it provides important signals about labor market participants’ decisions.
We look for a rising quit rate as a signal of confidence in the labor market; this measure was unchanged in May but we expect it to have resumed its climb to record highs in June. Layoffs remain near record lows, which we expect to continue, evidenced by the sustained low level of unemployment claims. By most accounts, the U.S. labor market is tight, which means the quits rate is likely to rise as employees leave current roles for new opportunities to support the current pace of job creation.”