US Job Openings Drop to 10.1 Million, Lowest Since June 2021




  • In Business
  • 2022-10-04 14:51:50Z
  • By Bloomberg

(Bloomberg) -- US job openings plummeted in August by the most since early in the pandemic, likely a welcome sign for Federal Reserve officials as they seek to cool demand for workers without triggering a spike in unemployment.

Most Read from Bloomberg

  • Elon Musk Sets Off Uproar in Ukraine by Tweeting His 'Peace' Plan

  • North Korea Fires Missile Over Japan for First Time Since 2017

  • Trump Asks to Push Special Master Appeal Hearing to January

  • Credit Suisse's Options Worsen as Markets Mayhem Takes Toll

  • Stocks Rise From the Ashes in Best Day Since July: Markets Wrap

The number of available positions decreased to about 10.1 million in the month from 11.2 million in July, the Labor Department's Job Openings and Labor Turnover Survey, or JOLTS, showed Tuesday. The August level was lower than all estimates in a Bloomberg survey of economists.

The 1.1 million decline in vacancies was the biggest since April 2020 and is consistent with moderating labor demand, reflective of shifting consumption patterns, rapidly rising interest rates and a darkening economic outlook.

Stocks jumped while Treasuries advanced after the report, as traders grew optimistic the Fed may not have to be as aggressive with its interest-rate hikes given some signs that demand for workers is cooling.

While the number of vacancies remains extremely high, the ratio of openings to unemployed persons retreated in August. There are some 1.7 jobs for every unemployed person, down from about 2 in July and the smallest ratio since November of last year.

Fed policy makers have pointed to the elevated number of job openings as a way to cool the labor market without an ensuing jump in unemployment. The decline in vacancies may help temper wage pressures that central bankers are trying to tame in an effort to extinguish rapid inflation.

What Bloomberg Economics Says...

"The ratio of job vacancies to unemployed persons fell sharply in August -- such a large drop usually implies a recession -- bolstering the case for the Fed to hike by 50 basis points rather than 75 at the November FOMC meeting. If this pace of decline continues, the labor market will be in a much cooler state by early next year, giving the Fed space to end its current tightening cycle."

-- Eliza Winger, economist

To read the full note, click here

Hires that were little changed during the month suggest some of the decline in vacancies reflected employers withdrawing job postings rather than filling them. The largest decreases in job openings were in health care and social assistance, other services and retail trade.

Some 4.2 million Americans quit their jobs in August, a slight increase from a month earlier. The quits rate, a measure of voluntary job leavers as a share of total employment, held at 2.7%.

Layoffs increased to the highest level since March 2021, though they remain historically low.

The JOLTS data precede Friday's monthly jobs report, which is currently forecast to show US employers added 265,000 to payrolls in September. Economists are expecting the unemployment rate to hold at 3.7%, just above a five-decade low, and for average hourly earnings to post another firm advance.

(Adds Bloomberg Economics comment. A previous version of this story corrected the change in openings.)

Most Read from Bloomberg Businessweek

  • Millions in Cryptocurrency Vanished as Agents Watched Helplessly

  • Pfizer Needs to Prove It's Ready to Move On From Covid-19

  • Maine Lobster Union Points the Way for Organizing Gig Economy Workers

  • The Unstoppable Dollar Is Wreaking Havoc Everywhere But America

  • Big Pharma Is Chasing a $55 Billion Prize of Safer Blood Thinners

©2022 Bloomberg L.P.

COMMENTS

More Related News

Oil Set for Steep Weekly Loss as Slowdown Concerns Loom Large
Oil Set for Steep Weekly Loss as Slowdown Concerns Loom Large

(Bloomberg) -- Oil headed for a weekly loss of almost 10% after a volatile period of trading as concerns over the economic outlook overshadowed an easing of ...

Zurich Front-Runner to Buy MetLife
Zurich Front-Runner to Buy MetLife's Malaysia Insurer

(Bloomberg) -- Zurich Insurance Group AG has emerged as the front-runner to buy a majority stake in the Malaysian insurance business of US insurer MetLife...

Asian Stocks Climb With Focus on Inflation Data: Markets Wrap
Asian Stocks Climb With Focus on Inflation Data: Markets Wrap

(Bloomberg) -- Asian stocks advanced Friday after US shares posted their first gain this month, with traders awaiting key inflation figures in China and the ...

Amazon Probed by OSHA Over Retaliation Claims After NYC Fire
Amazon Probed by OSHA Over Retaliation Claims After NYC Fire

(Bloomberg) -- Federal safety officials are investigating Amazon.com Inc. over allegedly retaliating against employees who raised safety concerns after a...

Top Thai Pet Food Market to Start Trading in Bangkok Today
Top Thai Pet Food Market to Start Trading in Bangkok Today

(Bloomberg) -- I-Tail Corp. Pcl., Thailand's top pet food maker, is set to debut in Bangkok on Friday following the country's second-largest initial public...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • engagement rings
    (2022-10-06 11:21:15Z)

    Accidentally i have come across this website and little bit confused bout the detail shared here. The Daily Magazine is one of the most popular online news portals and good to see the details shared here. You will get any kind of updated news on any topic through this online news channel. I am looking here for more details regarding that.

    REPLY

Top News: Business