Analysts at Wells Fargo, explained that the number of job openings declined 0.2 million to 6.6 million in May, which is still consistent with an extremely tight labor market. They pointed out that quits rose, pointing to higher wage pressures
Key Quotes:
“Job openings moderated to 6.6 million in May from an upwardly-revised 6.8 million in April, a series high. Openings in transportation, warehousing & utilities amount to 5.1 percent of industry employment, up sharply from 2.7 percent in May 2017.
“Separations stayed constant as a share of employment, as quits rose and layoffs declined. Quits, at 2.4 percent of employment, are at their highest rate since early 2001. Rising quits signal upward wage pressures, since workers who switch jobs typically move up the career ladder to higher-paid positions.”
“Layoffs and discharges are near their cycle low and are consistent with the sustained low level of initial jobless claims.”
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