Job openings decreased to 8.7 million in October. Hires rose slightly to 5.9 million.
Key takeaways
- Job openings decreased to 8.7 million in October, the fewest since March 2021. Hires rose slightly to 5.9 million in October.
- The number of job openings is still high by historical standards, but it is down from the peak of 11.9 million in March 2022.
- The number of hires has been increasing steadily since April 2020, but it is still below the pre-pandemic level of 6.4 million.
What does this mean for the economy?
The decline in job openings is a sign that the labor market is cooling. This is likely due to a number of factors, including the Federal Reserve's interest rate hikes, which have made it more expensive for businesses to borrow money and invest. The cooling labor market could lead to slower job growth in the coming months.
The increase in hires is a positive sign, but it is not enough to offset the decline in job openings. This means that the labor market is still tight, and there are more job openings than there are available workers.
What to watch for in the coming months
It will be important to watch for further signs of a cooling labor market in the coming months. This could include a decline in the number of hires, an increase in the number of layoffs, and a decline in the quit rate.
Some possible reasons for the decrease in job openings:
- The Federal Reserve's interest rate hikes: The Federal Reserve has been raising interest rates in an effort to combat inflation. This has made it more expensive for businesses to borrow money, which may be leading them to be more cautious about hiring.
- Economic uncertainty: The global economy is facing a number of uncertainties, such as the war in Ukraine and the COVID-19 pandemic. This may be causing businesses to delay hiring plans.
Despite the decrease in job openings, the labor market remains relatively strong. The unemployment rate is still near a 50-year low, and there are still more than 10 million job openings available. However, the decrease in job openings is a sign that the labor market is cooling off. This could be a sign that the economy is slowing down.