WASHINGTON: US job openings rose in March to the highest level in eight months and layoffs continued to decline, indicating the labor market remains fairly robust despite last month’s slowdown in employment gains.
The firmer labor market tone was also evident in another report on Tuesday, which showed small businesses increasingly having trouble finding qualified workers to fill open positions.
“The data generally remain upbeat and it does not look like there has been any material weakening in the health of the labor market lately,” said Daniel Silver, an economist at JPMorgan in New York.
Job openings rose 149,000 to a seasonally adjusted 5.8 million, the US Department of Labor said in its monthly Job Openings and Labor Turnover Survey (JOLTS) report.
That was the highest reading since July last year.
The rise lifted the jobs openings rate to 3.9 percent, retesting its post-recession high, from 3.8 percent in February.
However, hiring fell 218,000 to 5.3 million in March, suggesting employers are probably not finding qualified workers for the open positions. The hiring rate slid to 3.7 percent from 3.8 percent in February.
The JOLTS report is one of the job market metrics on US Federal Reserve Chair Janet Yellen’s so-called dashboard and continues to suggest the labor market is tightening.
However, labor market strength alone is insufficient to spur the Fed to raise interest rates before the end of the year, given slow economic growth and benign inflation. The Fed raised its benchmark overnight interest rate in December last year for the first time in nearly a decade.
Other details of the JOLTS report were fairly upbeat, also indicating that a deceleration in hiring last month probably did not signal a cooling in the job market.
The government reported on Friday that nonfarm payrolls increased 160,000 last month, the smallest gain in seven months, after advancing by 208,000 jobs in March. The unemployment was unchanged at 5 percent last month.
The JOLTS report showed a further decline in layoffs, while at the same time 2.98 million Americans quit their jobs voluntarily in March, a sign of confidence in the labor market. The quits rate was unchanged at 2.1 percent.
In a separate report, the National Federation of Independent Business said small businesses continued to report a shortage of qualified workers to fill job openings, with some saying they had either raised or planned to increase wages to attract and retain employees.
The share of small businesses reporting job openings they could not fill jumped last month, revisiting cycle highs. There was also an increase in the proportion of small business owners saying the quality of labor was their biggest concern.
In March, the number of unemployed job seekers per open job, a measure of labor market slack, was little changed at 1.38.
