September 2024 Job Growth and Quits Rate: Key Labor Market Trends

Key Job Highlights:

• The unemployment rate dropped to 4.1%.
• Average hourly earnings increased by 0.4%, slightly higher than anticipated.
• The quits rate decreased to 1.9%, marking the lowest level since June 2020.
   

Following several months of slower job growth, September delivered strong results across the board. The September 2024 Employment Report from the Bureau of Labor Statistics (BLS) showcased a robust labor market, with 254,000 jobs added—far exceeding the predicted 140,000. The unemployment rate inched down to 4.1%, reducing the number of unemployed individuals to 6.8 million. Sectors leading the job creation included private education and health services (+81,000), leisure and hospitality (+78,000), and government (+31,000). Wages also saw a bump, with average hourly earnings rising by 0.4% to $35.36.

Meanwhile, the August JOLTS report revealed an increase in job openings, climbing to 8 million from 7.7 million in July. However, hires, separations, and quits declined, signaling a slight cooling in job market turnover. The quits rate fell to 1.9%, the lowest it's been since June 2020, while layoffs remained largely stable.

Overall, the data paints a picture of a steady labor market, with ongoing job creation and wage growth, though there are signs of reduced worker mobility.

Additional Insights:

• A broader measure of unemployment (U6), which includes discouraged workers and those working part-time for economic reasons, dipped by 0.2%, reaching 7.7%.
• The prime age labor force participation rate (for those aged 25-54) decreased slightly by 0.1% to 83.8%.
• Overall labor force participation held steady at 62.7%, still 0.5% below the February 2020 levels.
• In September, average hourly earnings for private-sector employees rose by 13 cents, or 0.4%, reaching $35.36. Over the past year, wages have increased by 4%. For non-supervisory employees, hourly earnings grew by 8 cents, or 0.3%, bringing the average to $30.33.
• The average workweek for private nonfarm employees edged down by 0.1 hour to 34.2 hours in September. Manufacturing workweeks remained steady at 40.0 hours, with a slight reduction in overtime to 2.9 hours. The average workweek for non-supervisory workers also held at 33.7 hours.
• ADP reported 143,000 new jobs added in September.

Source: ADP, BLS, CNBC, Fox News

September 2024 Job Openings and Labor Turnover Report (JOLTS)

Job Openings and Labor Turnover – August 2024

According to the August 2024 JOLTS report, job openings remained steady at 8.0 million by the end of the month, down by 1.3 million compared to the previous year. The job openings rate held at 4.8%, with notable increases in the construction sector (+138,000) and state and local government jobs, excluding education (+78,000), while other services saw a drop (-93,000).

Hires:
Hires saw little change, totaling 5.3 million with a hiring rate of 3.3%.

Separations:
Total separations, which include quits, layoffs, and other separations, remained stable at 5.0 million. The quits rate, a gauge of worker confidence in leaving jobs, dipped to 1.9%. Notable declines were observed in transportation, warehousing, utilities (-45,000), arts, entertainment, and recreation (-18,000), and private education (-11,000). Layoffs were also relatively unchanged, though healthcare and social assistance saw a reduction in layoffs (-52,000).

Establishment Size Insights:
Establishments with 1-9 employees and those with 5,000 or more employees saw minimal changes in job openings, hires, and separations.

Revisions for July 2024:
July's job openings were revised up to 7.7 million, while hires were revised down to 5.4 million. Total separations for the month were also revised down to 5.3 million. Quits for July were adjusted down to 3.2 million, and layoffs revised down to 1.7 million.

Looking ahead, the next JOLTS report for September 2024 is scheduled for release on October 29, 2024, at 10:00 AM ET.

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