US: Solid signs of job market strength - Nomura

Analysts at Nomura note that in the US, June JOLTS data showed job openings rose to 6.662mn during the month, up marginally from an upwardly revised 6.659mn in May (previously reported as 6.638mn).

Key Quotes

“The job openings rate was unchanged at 4.3%. The total quits rate was unchanged in June at 2.3% but the quits rate for private workers ticked town 0.1pp to 2.5%. Labor market turnover, the sum of hires and separations divided by two times employment, decreased marginally from 4.15% to 4.13%, indicating that the small pick-up since March may be flattening.”

“Factoring in the June employment report data, the ratio of total unemployed workers to total job postings remains above 1 in the US labor market, a solid sign of job market strength. At the moment, labor demand remains strong, consistent with an economy operating above potential.”

“Continued improvement in labor market turnover could eventually help push up somewhat sluggish wage growth but for the moment we see no signs of an acceleration.”