July job openings decline exceeds expectations
Job openings reached a 3 1/2 year low in July, according to the latest data from the Labor Department, indicating slack in the labor market. The Job Openings and Labor Turnover Survey showed a decrease to 7.67 million available positions, down 237,000 from June and the lowest level since January 2021. Economists had anticipated 8.1 million openings. The decline brought the job openings per available worker ratio below 1.1, compared to its peak of over 2 to 1 earlier in 2022.
This data is expected to support Federal Reserve officials’ decision to lower Interest rates at their upcoming meeting on Sept. 17-18. The Fed uses the JOLTS report as a measure of labor market strength. Layoffs increased to 1.76 million, while total separations rose by 336,000. Hires also saw an increase of 273,000. The professional and business services sector experienced the largest increase in job openings, while private education and health services, trade, transportation, utilities, and government jobs declined.
Although the report raises concerns about a slowing economy, there is no indication of a rapid deterioration in the labor market. The low level of layoffs and uptick in hires suggest that while demand for workers is softening relative to the supply, the labor market remains stable. The report precedes the release of the August nonfarm payrolls count, expected to show an increase in payrolls and a slight drop in the unemployment rate.
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Lucas Bennett, completed his Finance degree at Bocconi University in Italy in 2018. He is highly skilled in corporate finance and risk management, beginning his career at a hedge fund in Milan. Lucas expertise extends to consulting for leading European firms, particularly within the energy markets sector. His analytical skills and strategic mindset have made him a sought-after consultant, and he continues to explore new opportunities within the financial services industry across Europe.