November Job Openings Slip, Retirements Hit Lowest Level
November Job Openings Slip, Retirements Hit Lowest Level
The November Job Openings and Labor Turnover Survey (JOLTS) report shows that job openings fell once again in November to 7.1 million. Compared to last November, the US labor market now has over 800,000 fewer job openings, with over 700,000 more unemployed individuals. It appears the bump in October job openings was more of a blip with data collection than a pivot in market direction. For now, the labor market shows more signs of softening than of recovery.
Turnover has slowed to a halt with the hires rate dropping to 3.2 - among the lowest rates of the past decade plus.
Employers are reluctant to make moves, as uncertainty around tariffs and inflation still linger.
While most industries saw a decrease in the hires rate in November, information, arts and entertainment, and construction all posted small positive gains.
The quits rate hovers at 2.0 - workers are staying put, with few opportunities emerging for job switching, many workers are choosing stability.
Workers in wholesale trade, information, real estate, and business and professional services had the biggest decrease in the quits rate. Wholesale trade is impacted largely by tariffs, creating more friction for job switchers as business activity is down.
Workers in accommodations and food services, construction, and mining saw the biggest increase in agency, as the quits rates jumped in those industries.
While total separations are little changed in November, other separations, often used as a proxy for retirements, hit a series low in November, at 191,000. This is the lowest level of other separations since at least 2000 when the data collection began.
Older workers are increasingly remaining in the labor market for longer. This trend is driven by two factors: rising life expectancy and increased pressure on retirement savings due to affordability concerns. A decline in retirement rates among an aging workforce suggests potential economic hardship, as workers feel compelled to extend their careers.