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Jobs data from the BLS, chart by Mish

Job Openings and Labor Turnover Summary (JOLTS)

The JOLTS Survey shows job openings increase to 9.6 million in August; hires and total separations changed little.

Job Openings

• On the last business day of August, the number and rate of job openings increased to 9.6 million (+690,000) and 5.8 percent, respectively.
• Over the month, job openings increased in professional and business services (+509,000), finance and insurance (+96,000), state and local government education (+76,000), nondurable goods manufacturing (+59,000), and federal government (+31,000).

Hires

• In August, the number of hires changed little at 5.9 million and the rate was unchanged at 3.7 percent.
• The number of hires changed little in all industries.

Separations

• The number of total separations in August was little changed at 5.7 million, and the rate was unchanged at 3.6 percent. Over the month, the number of total separations increased in accommodation and food services (+105,000) but decreased in information (-41,000) and federal government (-8,000).
• In August, the number of quits changed little at 3.6 million and the rate was unchanged at 2.3 percent. The number of quits increased in accommodation and food services (+88,000); finance and insurance (+28,000); state and local government, excluding education (+21,000); and arts, entertainment, and recreation (+18,000). The number of quits decreased in information (-30,000).
• In August, the number of layoffs and discharges changed little at 1.7 million, and the rate held at 1.1 percent. The number of layoffs and discharges decreased in state and local government, excluding education (-39,000), but increased in state and local government education (+27,000).

Total separations include quits, layoffs and discharges, and other separations. Quits are generally voluntary separations initiated by the employee. 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.

Job Quits by Sector in Thousands

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Quits rose in Leisure and Hospitality, and Accommodation and Food Service. Quits generally declined elsewhere.

The number of job openings is very suspect for many reasons: Companies do not take down filled positions, survey responses are sporadic, companies are not really looking to hire but if the perfect candidate comes along they will, motivation reasons, and it costs northing to leave an opening in place.

There is no reason to have any faith in the number of job openings. However, the direction of the trends is likely accurate.

Minimum Wage for Fast Food Workers Jumps 30% to $20 Per Hour in California

On April 1, fast food workers in California get a huge boost in minima wages. Governor Gavin Newsom called it a big deal.

Yes, governor, this is very big deal. It will increase the cost of eating out everywhere.

The bill Newsom signed only applies to restaurants that have at least 60 locations nationwide — with an exception for restaurants that make and sell their own bread, like Panera Bread (what’s that exception all about?)

Nonetheless, the bill will force many small restaurants out of business or they will pony up too.

30 Percent Raise Coming Up!

For discussion please see Minimum Wage for Fast Food Workers Jumps 30% to $20 Per Hour in California

If McDonalds pays $20, why take $15.50 elsewhere?

The $4.50 hike from $15.50 to $20 is a massive 30 percent jump.

Expect prices at all restaurant to rise. Then think ahead. This extra money is certain to increase demands for all goods and services.

The number of quits will surge and so will the stress on small businesses who cannot afford a 30 percent hike in payroll costs. And don’t forget to factor in business-paid payroll taxes.

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