Summary: US quit rate slips in January; job openings up, separations down; job openings number more than expected.
The number of US employees who quit their jobs as a percentage of total employment increased slowly but steadily after the GFC. It peaked in March 2019 and then tracked sideways until virus containment measures were introduced in March 2020. The quit rate plummeted as alternative employment opportunities rapidly dried up but then recovered quite quickly over the remainder of 2020.
Figures released as part of the most recent JOLTS report show the quit rate slipped back in January. 2.3% of the non-farm workforce left their jobs voluntarily, a slightly lower rate than December’s revised rate of 2.4%. The fall was led by fewer quits in the “Wholesale trade” and “Accommodation and food services” sectors and together, these two sectors accounted for nearly 60% of the decrease, while the “Finance & insurance” sector experienced the greatest increase. Overall, the total number of quits for the month fell by 96,000 from December’s revised figure of 3.407 million to 3.311 million.
Short-term US Treasury bond yields declined while longer-term yields increased on the day. By the close of business, the 2-year Treasury yield had lost 2bps to 0.14%, the 10-year yield had gained 2bps to 1.54% and the 30-year yield finished 5bps higher at 2.29%.
“More jobs are also becoming available, with job openings data for January lifting to 6.9 million. This was well above the 6.6 million expected, but the challenge remains to match the skills of those out of work with jobs available,” said ANZ economist Adelaide Timbrell.
Total vacancies at the end of January increased by 165,000, or 2.4%, from December’s revised figure of 6.752 million to 6.917 million, driven by a 62,000 rise in the “Other services” sector. 123,000 fewer openings in the “Accommodation and food services” sector provided the single largest offset. Overall, 14 out of 18 sectors experienced more job openings than in the previous month.