US job openings hit 3-1/2-year low as labor market eases
The larger-than-expected decline in unfilled jobs shown in the
Still, the labor market is likely not deteriorating. A separate report from the Fed described employment levels as "generally flat to up slightly in recent weeks."
The labor market is being closely watched by investors and policymakers following four straight monthly increases in the unemployment rate, which stoked fears of a recession. Economists are sticking to their forecasts for a 25-basis-point rate cut at the
"Does this report suggest the need for a 50-basis-point rate cut in September?" asked
Job openings, a measure of labor demand, had fallen by 237,000 to 7.673 million on the last day of July, the lowest level since
Economists polled by Reuters had forecast 8.100 million job openings. Vacancies peaked at 12.182 million in
Unfilled jobs declined by 187,000 in healthcare and social assistance and decreased by 101,000 in state and local government, excluding education. These two are among a handful of sectors that have driven job growth this year.
The transportation, warehousing and utilities sector had 88,000 fewer open positions. But job openings increased by 178,000 in the professional and business services category and there were 28,000 vacancies in the federal government. The job openings rate fell to 4.6%, the lowest level since
Hires increased by 273,000 to 5.521 million. They rose by 156,000 in accommodation and food services, but decreased by 8,000 in the federal government. The hires rate rose to 3.5% from 3.3% in June.
Layoffs rose 202,000 to 1.762 million, the highest level since
The layoffs rate rose to a still-low 1.1% from 1.0% in June. Low layoffs were underscored on Wednesday in the Fed's "Beige Book" report, which reported that five of the
It, however, noted that "a few districts reported that firms reduced shifts and hours, left advertised positions unfilled, or reduced headcounts through attrition, though accounts of layoffs remained rare."
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