2023-08-29 14:06:27
U.S. job openings fell in July to their lowest level in more than two years. It was also well below market expectations. It became a new factor suggesting that labor demand is slowing down.
Key point U.S. job openings down to 8,827,000 Median economists surveyed by Bloomberg revised down to 9,500,000 last month from 9,165,000 (preliminary estimate of 9,582,000)
Job openings fell for the sixth time in seven months.
Upper row: number of US job openings, lower row: turnover rate
Source: U.S. Bureau of Labor Statistics
The turnover rate, which is the percentage of voluntary turnover, fell to 2.3%, the lowest level since January 2021. It suggests that more people are hesitant to look for another job in the current labor market.
July saw the biggest declines in professional business services, healthcare and government.
Declining job openings combined with an upward trend in the labor force participation rate have improved labor market balance and moderated wage growth. The unemployment rate remains near record lows even as demand for workers slows.
“The Fed is concerned that rapid wage growth might fuel inflationary pressures in 2024, but there are fewer opportunities for higher pay to switch jobs,” said Bill Adams, chief economist at Comerica Bank. Wage growth is likely to slow in coming months as workers realize that
The number of job openings for every unemployed person fell to 1.5, the lowest level since September 2021.
Hiring fell to its lowest level since January 2021. A total of 458,000 cases fell in the last two months, the largest drop since the end of 2020.
Upper row: number of hires, lower row: increase/decrease in number of hires
Source: U.S. Bureau of Labor Statistics
Layoffs are almost unchanged. Firms remain reluctant to lay off workers, given simmering concerns regarding labor shortages and robust rice consumption.
For more information on the U.S. Department of Labor Survey of Employment Trends (JOLTS), see Statistical Tables.
Original title:US Job Openings Decline to 8.83 Million, Lowest Since Early 2021(excerpt), US Job Openings Fell to 8.827M in July, Est. 9.5M (excerpt)
(Updates with more stats, charts, economist perspectives, etc.)
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