An eight-month high in March job openings and a pickup in quits indicate the U.S. labor market continues to tighten, a Labor Department report showed.
Positions waiting to be filled rose by 61,000 to 5.74 million (forecast was 5.73 million), from 5.68 million in February (revised from 5.74 million). Hiring edged up to 5.26 million from 5.25 million; the hiring rate held at 3.6%. 3.12 million Americans quit their jobs, up from 3.04 million in the previous month; the quits rate held at 2.1%.
The report gives a glimpse into a weaker-than-expected reading for payrolls in March, when the reading was partly depressed by a snowstorm that slammed the Northeast during the survey week.
While a high number of openings shows companies are still willing to hire, managers are having trouble finding skilled and experienced labor to fill open positions.
A subdued level of layoffs shows they are choosing to hold onto the staff they have instead. A tightening labor market could translate to a breakout in wages after months of lackluster growth. An elevated number of people quitting their jobs shows that workers are confident enough of finding better wages elsewhere.
“People quit their jobs when higher wages are available elsewhere,” said Joseph Lavorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York, said in a note before the report. “In Yellen’s view, an increasing quits rate indicates greater worker confidence in the labor market.”
