The latest Job Openings and Labor Turnover Survey (JOLTS) showed that job openings fell from 8.85 million in October to a less than forecasted 8.79 million in November, which is the lowest level since March of 2021. The hiring rate dropped from 3.7% to 3.5% while the quit rate also declined from 2.3% to 2.2%, suggesting there’s a lack of employers trying to entice workers with other offers.
What’s the bottom line? While the Fed watches this report to monitor slack in the labor market, there are flaws in the data. The increase in working from home means job listings are being posted in multiple states more frequently. As a result, they’re being overcounted in the JOLTS total, meaning the report may be weaker than the headlines suggest.