The job market shows signs of cooling as workers become more hesitant to switch employers, according to the latest Bureau of Labor Statistics report released Wednesday. The quits rate decreased to 1.9% in August from 2% in July— the lowest level since June 2020. Additionally, the Job Openings and Labor Turnover Survey (JOLTS) revealed a decline in hiring, with 5.31 million new hires in August compared to 5.41 million in July.

Kimberly Forrest, Founder and Chief Investment Officer of Bokeh Capital Partners, joins Catalysts to analyze these findings.

Forrest characterizes JOLTS data as "aspirational for companies," explaining that many job openings remain unfilled due to mismatches between applicant qualifications and employer requirements. "I always look at JOLTS as company wishlists about finding the perfect employee. They want to find them, but when they're putting that ad out there, they know there's a good chance they're not going to hire," she explains.

Nevertheless, Forrest views the declining numbers as "promising," suggesting a potential shift in the labor market dynamics.

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This post was written by Angel Smith