US job openings fall to five-month low

Bloomberg

US job openings fell to a five-month low in November while still exceeding the number of unemployed Americans by almost 1 million, data consistent with a tight job market.
The number of positions waiting to be filled fell by 243,000 to 6.89 million, from a revised 7.13 million in the prior month, according to the Job Openings and Labor Turnover Survey or JOLTS, released by the Labor Department. The quits rate held at 2.3 percent, indi-cating confidence that job prospects remain strong.
The number of openings remains near a record, signalling employers continue to seek workers at a healthy pace. While the JOLTS data are for November, the December jobs report showed broad strength in payrolls and wages. The quits rate held steady as 3.41 million Americans quit their jobs, down slightly from 3.52 million and the third straight decline.
Federal Reserve policy makers watch the quits rate for signs of upward pressure on worker pay that may feed into inflation. Job postings exceeded the number of unemployed people by 870,000, one of the biggest gaps in data back to 2000. That signals a tight labor market, which also bodes well for worker pay. Average hourly earnings rose in December to match the fastest annual pace since 2009.
Although it lags a month behind other Labor Department data, the JOLTS report adds context to monthly employment figures by measuring dynamics such as resignations, help-wanted ads and hiring.
Hiring edged down to 5.71 million from 5.93 million the prior month while separations fell to 5.51 million. Categories showing declines in openings included construction, manufacturing and professional services.
Meanwhile, US consumer debt rose in November at a faster-than-estimated pace as Americans continued to borrow to finance purchases.
Total credit rose $22.1 billion from the prior month, exceeding the median estimate of economists, following a downwardly revised $25 billion gain in October, Federal Reserve figures showed. Non-revolving debt rose the most in a year.
The report is generally in-line with other data pointing to robust US consumer spending, buoyed by tax cuts and a solid jobs market that added the most workers in 10 months at year- end. The borrowing likely contributed in the fourth quarter to consumption growing at a healthy but more moderate pace than the prior two periods. Revolving credit outstanding, which includes credit card debt, increased $4.77 billion after a $9.34 billion rise the prior month.
The figures show Americans borrowed more cautiously at the start of the holiday season. Non-revolving debt outstanding climbed $17.4 billion after rising $15.6 billion. Such debt, which includes loans for education and automobiles, may in part reflect industry data showing sales of vehicles remained steady in late 2018.