Agencies
US job openings unexpectedly increased in August after two straight monthly decreases, but hiring was soft and consistent with a slowing labor market that keeps the Federal Reserve on track to cut interest rates again in November.
The Labor Department’s Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday also showed layoffs declining. There were 1.13 job openings for every unemployed person in August compared to 1.08 in July.
Resignations were the lowest in four years, a sign that Americans are growing less confident in the jobs market. Though Fed Chair Jerome Powell on Monday pushed against investors’ expectations for another half-percentage-point rate reduction, he described labor market conditions as having clearly cooled over the past year, noting that “workers now view jobs as somewhat less available than they were in 2019.”
“Today’s JOLTS estimates will be regarded as encouraging evidence that labor demand is stabilizing, implying that further increases in the unemployment rate are likely to be limited,” said Jonathan Millar, a senior economist at Barclays. “The widening gap between hiring and separations likely keeps the Fed on course for a 25 basis points cut in November.” Job openings, a measure of labor demand, rebounded by 329,000 to 8.040 million by the last day of August, the Labor Department’s Bureau of Labor Statistics said. Data for July was revised higher to show 7.711 million unfilled positions instead of the previously reported 7.673 million.
Economists polled by Reuters had forecast 7.660 million job openings. The rise in vacancies was led by the construction industry, with 138,000 job openings.
There were 78,000 unfilled positions in state and local government, excluding education. But job openings in the ‘other services’ category fell 93,000.The job openings rate increased to 4.8 percent from 4.6 percent in July. Businesses with 10 to 49 employees reported 203,000 more job openings. Medium-sized and large companies saw a decline in vacancies.
Hires slipped 99,000 to 5.317 million, pulled down by declines in retail trade, transportation, warehousing and utilities as well as manufacturing, healthcare and social assistance. Hires also fell at hotels, restaurants and bars.
The hires rate dropped to 3.3 percent from 3.4 percent in July. Hires dropped 180,000 among companies with 10 to 49 workers, suggesting a shortage of workers could be an issue. Layoffs declined by 105,000 to 1.608 million.
There were decreases in layoffs in the retail trade and healthcare and social assistance sectors as well as at hotels, restaurants and bars.
