The remarkable labor market cooling seen in August reversed in September – job openings increased by nearly 437,000. Demand far outpaces supply – there are nearly 1.8 openings for each unemployed job seeker in the U.S. today.
But openings are down compared to highs earlier in the year. As much as the Federal Reserve would like it to, cooling does not happen overnight. Plus, August’s decrease in job openings was not the only signal of a softening market. A decline in the quits rate hints at another potential crack in the rock-solid labor market.