Key Highlights:
· The unemployment rate fell 4.1%.
· Average hourly earnings rose 0.4% last month, a bit higher than expected.
- Quits Rate fell to 1.9%, the lowest since June 2020
After a few months of softer jobs growth, September’s numbers came in strong all around. The September 2024 BLS Employment Report revealed a solid labor market, with 254,000 jobs added, surpassing economists' expectations of 140,000. The unemployment rate dropped slightly to 4.1%, reflecting a decrease in the number of unemployed individuals to 6.8 million. Key sectors driving job growth included private education and health services (+81,000), leisure and hospitality (+78,000), and government (+31,000). Wages also saw an increase, with average hourly earnings rising by 0.4% to $35.36.

Meanwhile, the August JOLTS report showed job openings rising to 8 million, up from 7.7 million in July. However, hires, separations, and quits all declined, indicating a cooling labor market in terms of turnover. The quits rate fell to 1.9%, the lowest since June 2020, while layoffs remained stable.
Overall, both reports suggest a resilient labor market, with steady job creation and wage growth, but with signs of reduced labor mobility.
For a deeper dive….
· A more encompassing measure of unemployment (U6) that includes discouraged workers and those holding part-time jobs for economic reasons fell .2% to 7.7%.
· Prime age labor force participation rate (ages 25-54) was down .1% to 83.8%.
· The overall labor force participation held steady at 62.7%. This is still .5% below the level of February 2020.
· In September, average hourly earnings for all employees on private nonfarm payrolls increased by 13 cents, or 0.4 percent, to $35.36. Over the past 12 months, average hourly earnings have increased by 4.0 percent. In September, average hourly earnings of private-sector production and nonsupervisory employees increased by 8 cents, or 0.3 percent, to $30.33.
· The average workweek for all employees on private nonfarm payrolls edged down by 0.1 hour to 34.2 hours in September. In manufacturing, the average workweek was unchanged at 40.0 hours, and overtime edged down by 0.1 hour to 2.9 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls remained at 33.7 hours.
· APD reported that 143,000 jobs were added in September.
Source: ADP, BLS, CNBC, Fox News
JOB OPENINGS AND LABOR TURNOVER – AUGUST 2024
The number of job openings was little changed at 8.0 million on the last business day of August, the U.S. Bureau of Labor Statistics reported today. Over the month, hires changed little at 5.3 million. Total separations changed little at 5.0 million. Within separations, quits (3.1 million) continued to trend down and layoffs and discharges (1.6 million) changed little. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, and by establishment size class.
Job Openings
The number of job openings was little changed at 8.0 million on the last business day of August but was down by 1.3 million over the year. The job openings rate, at 4.8 percent, changed little over the month. The number of job openings increased in construction (+138,000) and in state and local government, excluding education (+78,000). Job openings decreased in other services (-93,000).
Hires
In August, the number and rate of hires changed little at 5.3 million and 3.3 percent, respectively.
Separations
Total separations include quits, layoffs and discharges, and other separations. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer. Other separations include separations due to retirement, death, disability, and transfers to other locations of the same firm.
The number of total separations in August changed little at 5.0 million. The total separations rate decreased to 3.1 percent. Total separations increased in professional and business services (+149,000) but decreased in accommodation and food services (-111,000) and in state and local government, excluding education (-25,000).
In August, the number of quits trended down to 3.1 million (-159,000), while the quits rate, at 1.9 percent, changed little. Quits decreased in transportation, warehousing, and utilities (-45,000); arts, entertainment, and recreation (-18,000); and private educational services (-11,000).
In August, the number and rate of layoffs and discharges changed little at 1.6 million and 1.0 percent, respectively. Layoffs and discharges decreased in health care and social assistance (-52,000).
The number of other separations changed little at 304,000 in August.
Establishment Size Class
In August, establishments with 1 to 9 employees and establishments with 5,000 or more employees, showed little or no change in job openings, hires, and separations rates.
July 2024 Revisions
The number of job openings for July was revised up by 38,000 to 7.7 million, the number of hires was revised down by 105,000 to 5.4 million, and the number of total separations was revised down by 106,000 to 5.3 million. Within separations, the number of quits was revised down by 34,000 to 3.2 million, and the number of layoffs and discharges was revised down by 49,000 to 1.7 million. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)
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The Job Openings and Labor Turnover Survey estimates for September 2024 are scheduled to be released on Tuesday, October 29, 2024, at 10:00 a.m. (ET).
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