The latest Job Openings and Labor Turnover Survey (JOLTS) indicated a slight easing in the labor market, with job openings in June registering at 8.18 million, a modest decline from the revised May figure of 8.23 million.
Despite robust GDP growth in the second quarter, the labor market displayed signs of normalization without showing significant weaknesses. The June job openings slightly exceeded market expectations, which were set at 8 million, according to the consensus.
Moreover, the data for May was revised upwards by 90,000, suggesting a firmer labor market than initially reported. The layoff and discharge rate in June dipped to 0.9%.
“On net, the JOLTS data point to a labor market that has normalized, but which does not look to have turned the corner into outright weakness,” Wells Fargo economists wrote.
“Overall, the Fed will likely read this set of data as consistent with the labor market further rebalancing, with continued weakening in hires supporting the assessment that the balance of risks is shifting in a way that favors a 25bp cut in September, but without the cracks – layoffs are very low – that would call for more aggressive or immediate easing,” Evercore ISI economist Marco Casiraghi said in a note.
