Summary
Job openings fall 338,000 to 8.827 million in July
Quits drop 253,000 to 3.549 million; layoffs unchanged
Consumers’ perceptions of labor market cool in August
WASHINGTON, Aug 29 (Reuters) – U.S. job openings dropped to the lowest level in nearly 2-1/2 years in July as the labor market gradually slowed, bolstering expectations that the Federal Reserve will keep interest rates unchanged next month.
The Job Openings and Labor Turnover Survey, or JOLTS report, from the Labor Department on Tuesday also showed the number of people quitting their jobs dropped to levels last seen in early 2021, indicating that Americans were becoming less confident in the labor market.
That was reinforced by a survey from the Conference Board showing consumers’ perceptions of the labor market cooled in August. Nevertheless, labor market conditions remain tight, with 1.51 job openings for every unemployed person in July, compared to 1.54 in June. While that was the lowest ratio since September 2021, it is well above the 1.0-1.2 range considered consistent with a jobs market that is not generating too much inflation. Layoffs are very low by historical standards.
“Although the labor market is still tight, the degree of excess demand is declining and is coming about through companies reducing the number of vacancies rather than increasing layoffs and unemployment,” said Conrad DeQuadros, senior economic advisor at Brean Capital in New York. “There is plenty here to make the case that not only is the labor market rebalancing but at this point it is doing so without pushing up unemployment.”
Job openings, a measure of labor demand, were down 338,000 to 8.827 million on the last day of July, the lowest level since March 2021. Economists polled by Reuters had forecast 9.465 million job openings.
The decrease was led by the professional and business services sector, where job openings dropped 198,000. There were 130,000 fewer vacancies in healthcare and social assistance, while open positions fell 67,000 in state and local government, excluding education.
State and local government education job openings declined by 62,000 and there were 27,000 fewer federal government vacancies. But unfilled jobs rose by 101,000 in the information sector. There were an additional 75,000 open positions in the transportation, warehousing and utilities sector.
The job openings rate fell to 5.3%, the lowest level since February 2021, from 5.5% in June. The decline in vacancies was more pronounced in the South, which has experienced an employment boom. The Midwest reported a modest drop, while job openings increased in the Northeast and West.
Reuters Graphics
Declining job openings are likely to be mirrored by slower job growth in August. Economists expect the increase in nonfarm payrolls moderated further in August after posting in July the second-smallest gain since December 2020.
Fed Chair Jerome Powell said at the annual Jackson Hole economic conference in Wyoming on Friday that the U.S. central…
Source from www.reuters.com