US / Job cuts at record low, but openings at the lowest level since January

The number of layoffs and firings recently hit a record low level, according to government data released Tuesday morning. There were 1.51 million layoffs and discharges in July, down from 1.6 million in June and 1.79 million when the recession started at the end of 2007. The data go back to 2000.

Those findings are from the U.S. Department of Labor’s job openings and labor turnover survey, otherwise known as the JOLTS report. The report provides a monthly snapshot of how many workers are being hired, fired, quitting, as well as the number of job opportunities. Janet Yellen, vice chair of the Federal Reserve’s Board of Governors and a candidate to replace Ben Bernanke as chairman, said earlier this year that such statistics offer clues about “the underlying dynamics of the labor market.”

The news about layoffs and firings may be particularly welcome following last week’s weak jobs report, which showed that the labor market remains far from strong growth. However, Tuesday’s report isn’t entirely positive. Consider this: One reason why employers are letting go of few workers is that staff levels are already so slim that there’s little fat to cut.

Indeed, other parts of the JOLTS report paint a picture of an employment environment that is only eking out improvements. Job openings in July fell to 3.69 million, the lowest level since January, meaning that there were fewer opportunities and more competition for workers. However, openings rose 5.4% from the year-earlier period.

Competition for jobs is only slowly easing. There were about 11.5 million unemployed people in July, translating to roughly 3.1 job seekers per opening. A year earlier, the ratio was 3.6. When the recession began, there were about 1.8 unemployed people per opening.

Chosen excerpts by Job Market Monitor. Read the whole story at 

via Job cuts at record low, but workers aren’t happy – Slide Show – MarketWatch.