Job openings are at their lowest level since January 2021
Job openings fell more than expected in September. The data comes as investors closely monitor signs of further cooling in the labor market ahead of the Federal Reserve's next interest rate decision on November 7.
New data from the Bureau of Labor Statistics released Wednesday showed there were 7.44 million job openings at the end of September, down from 7.86 million seen in August and the lowest level of job openings since January 2021.
The August figure was revised down from the 8.04 million open jobs initially reported. Economists polled by Bloomberg had expected the report to show 8 million openings in September.
EY chief economist Gregory Dako told Yahoo Finance that the release showed there was “much less tension” in the labor market.
The Job Openings and Labor Turnover Survey (JOLTS) also showed that 5.55 million were hired in the month, up from 5.43 million seen in August, while the hiring rate rose slightly to 3.4% in August from 3.5% in September.
“We've seen a slight rebound in the hiring rate, which shows you that basically the floor isn't falling under the labor market,” Dako said. “But instead, what we're seeing is a mild cooling of labor demand and less labor supply absorption, nothing catastrophic.”
Tuesday's data also showed that the quit rate, a sign of confidence among workers, fell to 1.9% in September from a revised 2% in August.
“Lower levels of resignation are consistent with reduced availability of employment opportunities,” Nancy Vanden Houten, a US economist who leads Oxford Economics, wrote in a note on Tuesday. “The steady decline in the quit rate is consistent with rising wages and slowing inflationary trends from the labor market.”
The data is largely consistent with lower turnover, but not the labor market shrinking completely, districts reported last week in the October Fed beige book.
“Many districts reported low staff turnover, and layoffs remained limited,” the report said. “Labor demand has eased somewhat, with hiring primarily focused on replacement rather than growth.”
Tuesday's JOLTS report kicks off a busy week of labor market data ahead of the Fed's November meeting. On Friday, the October jobs report is scheduled to be released. Wall Street estimated the U.S. economy added 110,000 jobs in October, down significantly from the 243,000 seen in September, according to Bloomberg data. Economists expect recent weather disruptions and a strike by Boeing ( BA ) workers to limit overall wage gains in the month.
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