Job openings rose sharply in September to 7.52 million, well above economist expectations, while the number of workers quitting their jobs spiked to the highest level since March 2025 and layoffs dropped to their lowest in 18 months, the Bureau of Labor Statistics reported Tuesday, offering a positive signal ahead of Friday's payrolls data.
The monthly Job Openings and Labor Turnover Survey (JOLTS) showed openings increased by 333,000 from August, handily beating the Dow Jones consensus of 7.15 million. As a share of the total workforce, the job-openings rate rose 0.2 percentage points to 4.5%. There were about 1.05 openings for every available worker, with 414,000 more openings than unemployed people.
Openings increased in manufacturing (54,000), state and local government (108,000), and professional and business services (106,000).
The total of employees leaving their jobs rose by 321,000 to 3.36 million, the highest since March 2025. Hires also climbed, up 131,000 to 5.4 million, while layoffs and discharges declined by 127,000 to 1.64 million, the lowest since March 2025.
"There are more job openings than unemployed people in the United States right now. That doesn't solve all problems, but it's a big change from a year ago," said Heather Long, chief economist at Navy Federal Credit Union. "It's an encouraging sign that despite all the headwinds right now with high diesel and gas prices and ongoing inflation problems, companies are slowly increasing their hiring."
The JOLTS release comes ahead of the October nonfarm payrolls report due Friday. The Wall Street consensus expects an increase of 59,000 jobs, after September's meagre gain of 29,000, with the unemployment rate forecast to hold at 4.2%.
Separately, September factory orders for manufactured goods jumped 1.8%, well above the 1.3% estimate and accelerating from a 0.3% gain in August.
A big week for US labor market data kicked off today with a stronger-than-expected September JOLTS report:
Vacancies climbed to 7.5 milliom (up nearly 500k), beating consensus.
The quit rate rose (typically a sign of greater worker confidence in finding a better job).
Layoffs fell.
The focus now shifts to jobless claims and Friday’s monthly employment report.
#economy#jobs#employment#jolts#marketa
The strong job openings data signals that employers remain confident in the economy despite headwinds from inflation and higher fuel costs, reducing recession fears in the near term.
The surge in quits shows workers are confident enough to leave jobs for better opportunities, which tends to put upward pressure on wages as employers compete for talent.
The data will feed into the Federal Reserve's assessment of the labor market as it weighs further interest rate decisions, with a tight labor market potentially delaying rate cuts.
Background
The JOLTS report is closely watched as a measure of labour market slack and worker mobility. The September figures mark a sharp reversal from recent months, when job openings had been trending down from pandemic-era peaks. The improvement comes despite ongoing concerns about inflation and the impact of high diesel and petrol prices on the broader economy. Friday's October payrolls report will provide the next major checkpoint on the health of the US labour market.
What to Watch
The October nonfarm payrolls number due Friday: a strong reading would reinforce the picture of a resilient labour market.
The quits rate: further increases could signal a tightening labour market that may feed into wage growth and Fed policy.
Factory orders for October: the sharp September rise will need to be sustained to suggest manufacturing is turning a corner.
12 claims in this story checked against 1 source: 12 supported.
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SupportedUS job openings reached 7.52 million in September, far above forecasts.Economy: “the BLS reported job openings at 7.52 million, up 333,000 from August and well above the Dow Jones consensus outlook for 7.15 million.”
SupportedWorkers quitting their jobs reached their highest level in 18 months.Economy: “the total of employees leaving their jobs spiked to 3.36 million, an increase of 321,000 from August and the highest level since March 2025.”
SupportedLayoffs fell to their lowest level in 18 months.Economy: “layoffs and discharges fell by 127,000 to 1.64 million, the lowest since March 2025.”
SupportedThe BLS reported the figures Tuesday, ahead of Friday’s payrolls report, as a positive signal.Economy: “Job openings posted big September gain in positive sign for labor market ahead of payrolls report.”
SupportedOpenings increased by 333,000 from August and exceeded the Dow Jones consensus of 7.15 million.Economy: “the BLS reported job openings at 7.52 million, up 333,000 from August and well above the Dow Jones consensus outlook for 7.15 million.”
SupportedThe job-openings rate rose 0.2 percentage points to 4.5%.Economy: “the rate of job openings increased to 4.5%, up 0.2 percentage point from the prior month”
SupportedThere were about 1.05 openings for every available worker and 414,000 more openings than unemployed people.Economy: “There are now some 414,000 more job openings than workers classified as unemployed, or about 1.05 openings to every available worker.”
SupportedEmployees leaving their jobs rose by 321,000 to 3.36 million, the highest level since March 2025.Economy: “the total of employees leaving their jobs spiked to 3.36 million, an increase of 321,000 from August and the highest level since March 2025.”
SupportedHeather Long said, “There are more job openings than unemployed people in the United States right now. That doesn't solve all problems, but it's a big change from a year ago,”Economy: “"There are more job openings than unemployed people in the United States right now. That doesn't solve all problems, but it's a big change from a year ago," said Heather Long, chief economist at Navy Federal Credit Union.”
SupportedHeather Long said, “It's an encouraging sign that despite all the headwinds right now with high diesel and gas prices and ongoing inflation problems, companies are slowly increasing their hiring.”Economy: “"It's an encouraging sign that despite all the headwinds right now with high diesel and gas prices and ongoing inflation problems, companies are slowly increasing their hiring."”
SupportedHires rose by 131,000 to 5.4 million.Economy: “Hires rose on the month, up 131,000 to 5.4 million”
SupportedLayoffs and discharges fell by 127,000 to 1.64 million, the lowest since March 2025.Economy: “layoffs and discharges fell by 127,000 to 1.64 million, the lowest since March 2025.”
