August Job Openings in US Jump; Quit Rate Stays the Same

In August job openings in the U.S. increased unexpectedly amid a surge in demand for workers in the business and professional services sector, indicating the labor market was still tight and that may force the Fed to hike interest rates next month.

On Tuesday the jump reported by the JOLTS report broke three consecutive monthly drops in job openings. In August employers were also holding onto their employees.

The labor market is however steadily moving towards a scenario where demand and supply are in balance. In August there were 1.5 job openings for every unemployed person and the quits rate did not change. The Fed kept rates steady last month but indicated a hike by the end of the year.

Job openings, a measure of labor demand, were 690K higher at 9.610 million on Augusts last day. July data was revised higher to show 8.92M job openings rather than the 8.827M previously reported. Economists had expected 8.8M job openings in August.

There were 509K more open positions in the business and professional services, while openings in the insurance and finance sector increased by 96K. Local and state government education had 76K more vacancies.