US: Hiring intentions remained strong ahead of disruptions - Wells Fargo

According to analysts from Wells Fargo, hiring intentions remained strong in the United States ahead of the labor market disruptions that they expect to see due to recent hurricane activity. 

Key Quotes: 

“Upcoming labor market readings are expected to deteriorate due to Hurricanes Harvey and Irma hindering activity in recent weeks, but the JOLTS data indicate hiring intentions remained strong heading into the second half of the year. Job openings hit a fresh record high in July of 6.2 million.”

“After largely moving sideways in 2016 and early 2017, job openings are up 4.0 percent over the past year.”

“Job turnover ticked up in July with separations rising to 5.33 million. The mix of turnover improved with the rise stemming from more workers voluntarily leaving their job. The larger number of quits is associated with confidence in the labor market, but has yet to put meaningful pressure on wages. Turnover remains low relative to the degree of labor market tightness indicated by the vacancy rate and unemployment rate.”