US: Signs of underlying labor market strength - Nomura

Analysts at Nomura point out that in the US, JOLTS job openings declined 202k to 6638k in May, lowering the job openings rate 0.1pp to 4.3%, a still-high reading.

Key Quotes

“The decline was driven by professional & business services, health care and arts, entertainment and recreation service industries. The number of quits in May jumped sharply by 212k, raising the total quits rate to 2.4%, a new post-recession high.”

“The elevated quits rate is a key sign of underlying labor market strength as workers often feel emboldened to separate from their current employers in a tight labor market.”

“Overall, today’s JOLTS data are consistent with other labor market indicators, suggesting steady momentum going into Q3.”