The number of job openings in the U.S. hit a record high in July as it nears the seven million mark with notable rises in vacancies within the finance and manufacturing sectors. Treasury yields rose across the board on this latest data reported by the Labor Department.
The benchmark 10-year yield went up to 2.968 as it inches towards the 3% yield marker. In the meantime, the 30-year yield went up to 3.11, while short-term yields showed the 2-year ticking higher to 2.74 and the 5-year to 2.86.
The number of vacancies outnumbered those classified as unemployed by 659,000 during July. Job openings rose by 117,000 from June to 6.94 million, which represents an increase of 737,000 over the past year.
Furthermore, the Bureau of Labor Statistics reported that the quits rate, which measures employees leaving their positions voluntarily, hit a new record of 3.6 million–a rise of 106,000 compared to the previous month. The current quits rate of 2.4 percent is the highest number recorded since April 2001.
“Mobility of workers between jobs boosts competition for talent and puts pressure on employers to offer better pay and benefits,” said Cathy Barrera, chief economist for online job site ZipRecruiter.
Related: Private Payrolls Less than Expected, Jobless Claims Fall
Source: tradingeconomics.com
Job Market Still Robust
The latest employment data suggests that the labor market is still at full strength as the stock market is in the midst of an extended bull run. Last week, ADP and Moody’s Analytics reported that private payrolls added 163,000–less than the expected 190,000 and the Labor Department reported unemployment filings fell to a 49-year low.
The employment data may have presented investors with a mixed bag, but it still reveals a robust job market despite private payrolls missing its expectations. Companies added 163,000 jobs in August, which represents a tangible slowdown versus the 217,000 added in the previous month and below the average of 206,000 a month.
Additionally, the month of August revealed a steep decline in hiring by small businesses, but in spite of this, the labor market continues to thrive. Furthermore, this sentiment is paired with an unemployment rate that continues to be at historically low levels.
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