Improvement in Job Openings first signal of improving job market

But progress likely to be slow

The job openings and labor turnover report (JOLTs) is one of those second-tier economic reports that tends to get very little attention; however, today's rise is worthy of mention given the mostly bad news we've been hearing on the labor market.

The U.S. Labor Department reported today that the job openings rate increased from 1.9% in December to 2.1% in January , the highest the rate has been since February 2009.

Although well below the 3.2% rate seen when the U.S. economy entered the recession over two years ago, the rate has edged up from the bottom of 1.9%, signaling the employers are cautiously starting to advertise new openings.

But gains may be slow, as the hire rate held steady at 3.1% and has been stuck in a narrow range for over a year.

The labor market is among the last of the economic indicators that turn positive following the end of a recession. The downward trend in weekly jobless claims has stalled, though weather and problems making seasonal adjustments might share some of the blame, while nonfarm payrolls, which have stabilized, have not turned higher in any meaningful way.

However, the increase in job openings may finally be pointing to a slow recovery in the labor market.