Job openings fall to lowest level since January 2021

Posted by Admin October 29, 2024 Jobs

Job openings fell more than expected in September. The data comes as investors closely watch for signs of further cooling in the labor market ahead of the Federal Reserve’s next interest rate decision on Nov. 7.

New data from the Bureau of Labor Statistics released Wednesday showed that there were 7.44 million jobs open at the end of September, a decrease from the 7.86 million seen in August and the lowest level of job openings since January 2021.

August’s figure was revised lower from the 8.04 million open jobs initially reported. Economists surveyed by Bloomberg had expected the report to show 8 million openings in September.

EY chief economist Gregory Daco told Yahoo Finance that the release shows there “is much less tightness” in the labor market.

The Job Openings and Labor Turnover Survey (JOLTS) also showed 5.55 million hires were made during the month, up from 5.43 million seen in August, while the hiring rate rose slightly to 3.5% in September, up from 3.4% in August.

“We saw a slight rebound in the hiring rate, which shows you that essentially the floor is not falling under the labor market,” Daco said. “But instead, what we’re seeing is a gentle cooling of labor demand and less labor supply absorption, nothing catastrophic.”

Tuesday’s data also showed the quits rate, a sign of confidence among workers, fell to 1.9% in September down from the revised 2% seen in August.

“The low level of quits is consistent with a decline in the availability of employment opportunities,” Oxford Economics lead US economist Nancy Vanden Houten wrote in a note on Tuesday. “The steady decline in the quits rate is consistent with wage growth continuing to slow and easing the inflationary impulse from the labor market.”

The data largely fell in line with the low turnover, but not an outright declining labor market, that districts reported in the October Fed Beige Book last week.

“Many Districts reported low worker turnover, and layoffs reportedly remained limited,” the report said. “Demand for workers eased somewhat, with hiring focused primarily on replacement rather than growth.”

Tuesday’s JOLTS report kicked off a busy week of labor market data ahead of the Fed’s November meeting. On Friday, the October jobs report is slated for release. Wall Street estimates the US economy added 110,000 jobs in October, down significantly from the 243,000 seen in September, per Bloomberg data. Economists expect recent weather disruptions and a strike by Boeing (BA) workers to limit overall payroll gains seen in the month.

As of Tuesday, markets were pricing in a 99% chance the Federal Reserve cuts interest rates by 25 basis points on Nov. 7, per the CME FedWatch Tool.