US Job Openings Rose Sharply in September to 7.523 Million, Well Above Forecasts

US job openings rose sharply in September, climbing by 333,000 to 7.523 million on the last day of the month, the Bureau of Labor Statistics said on Tuesday in its Job Openings and Labor Turnover Survey, known as JOLTS. The figure came in well above the 7.100 million unfilled positions that economists polled by Reuters had forecast for September.

The September jump followed an upward revision to August. Openings for August were revised higher to 7.190 million, from the 7.079 million reported earlier. The job openings rate, which measures openings as a share of employment and openings combined, rose to 4.5 percent in September from 4.3 percent in August.

Hiring rose and layoffs fell

Hiring increased by 131,000 to 5.402 million in September, and layoffs fell during the month, according to the report. The stronger openings and hiring numbers stood next to a much weaker payroll gain for the same month. September nonfarm payrolls had risen by only 29,000, a small increase next to the 5.402 million hires recorded in the JOLTS report.

More workers also chose to leave their jobs. Quits rose to 3.4 million in September, a rate of 2.1 percent, up from 1.9 percent in August, The Wall Street Journal reported. A rise in quits is read by economists as a sign that workers feel confident about finding another job, because most quits are workers leaving one position for another opportunity.

Markets read the report as room for the Fed

The stronger openings figure reached markets quickly. Spot gold traded at 3,938.10 dollars an ounce, down 0.20 percent on the day, Kitco News reported. Kitco said the solid rise in job postings gave the Federal Reserve room to raise rates, a reading that weighed on gold, which pays no interest and tends to lose ground when rate rises look more likely.

A second report released at the same time also beat expectations. US factory orders rose 1.8 percent in September against a forecast of 1.2 percent, after a 0.1 percent rise the prior month, InvestingLive reported from the US Census Bureau release. Factory orders excluding transportation rose 0.5 percent in September.

October payrolls come Friday

The next test of the jobs picture arrives on Friday, November 6, when the October payrolls report is due. Economists expect October payrolls to have advanced by 65,000, with the unemployment rate forecast unchanged at 4.2 percent, according to a Reuters survey. That report will show whether the strength in September openings and hiring carried into hiring decisions in October, or whether the small 29,000 payroll gain in September was the better guide to the pace of job creation.

For now, the September JOLTS report points to demand for workers that held up better than forecasters expected. Openings rose, the openings rate rose, hiring rose, layoffs fell and quits rose, all in the same month, and August was revised higher as well.