June JOLTS Report: On Tuesday, a survey showed a slight decrease in job vacancies and layoffs in June, easing economic concerns and highlighting the job market’s strength.
June’s JOLTS reported 9.58 million job opportunities, a 5% decrease from May’s revised 9.62 million. This was the fewest jobs since April 2021, while FactSet predicted 9.2 million positions.
The JOLTS report showed layoffs decreased from 1.55 million in May to 1.53 million in June.
Economists analyzed data to predict the job market’s future as the Federal Reserve raised interest rates to control inflation and economic growth.
Lightcast Senior Economist Rachel Sederberg said things are heading “in the Goldilocks direction,” sounding balanced and safe. The decrease in job opportunities and layoffs indicates a slowdown in labor demand, as predicted by the Federal Reserve. Companies retaining workers suggest a stable job market.
JOLTS data helps the Fed decide. The Fed raised rates by 5.25 points since March 2022.
Indeed Hiring Lab’s economic research director, Nick Bunker, praised the Q2 U.S. economy. June JOLTS data confirms this. He warned that the current slowdown may be too gradual for some Fed officials due to declining employment openings. He noted that workers still have negotiating leverage, which is positive.
June job opportunities dropped 12.6%, per Labor Department data. 1.52 job openings per worker. Health care, social assistance, and state and local government job opportunities increased, while transportation, warehousing, utilities, and education job openings decreased.
Data showed manufacturing contracted in July. The ISM Manufacturing Index was 46.4, below 50, showing sector contraction. Industry jobs fell by 3.7 points, impacting the index.
Analysts await the ADP private sector hiring report, weekly jobless claims report and nonfarm payrolls report to gauge the economy. July jobs data will likely show 200,000 new jobs, down from 209,000 in June. 3.42% unemployment is forecasted.