US: Labor demand remains strong - Wells Fargo

Job openings jumped to a new high in March, signaling labor demand remains strong despite softer job gains the past two months explained analysts at Wells Fargo. They note that a rising share of workers quitting their jobs should put some upward pressure on wages.

Key Quotes:

“The rate of job openings in the U.S. labor market climbed to a record high 4.2 percent in March. Most industries saw openings improve over the month, with notable strength in construction, transportation/warehousing and professional services.

“Turnover fell, but the composition was more favorable with quits rising. Quits are often viewed as a sign of wrker confidence in the labor market, but they are also a source of upward pressure on wages. The majority of workers who voluntarily change jobs receive a pay bump, generating stronger wage growth for job switchers. Although average hourly earnings disappointed in April, the JOLTs data suggest growing upward pressure.“