US Job Openings Report

Investing.com — US job openings decreased more than expected in September, reaching their lowest level since January 2021. This decline may indicate a gradually slowing labor market, strengthening the case for the Federal Reserve to consider reducing interest rates again in November.

The Job Openings and Labor Turnover Survey (JOLTS) revealed that the number of workers voluntarily leaving their jobs fell slightly by 107,000 to 3.1 million, suggesting diminishing confidence among Americans in their ability to find new employment. Conversely, layoffs increased by 165,000, totaling 1.8 million.

In September, there were approximately 1.08 job openings for every unemployed individual, a decrease from 1.09 in August.

Fed Chair Jerome Powell indicated that the labor market has cooled over the past year, with workers perceiving jobs as "somewhat less available" compared to pre-pandemic times. Powell and fellow policymakers previously cut interest rates by 50 basis points in September to support labor demand, and face another policy decision next month.

According to the CME Group's FedWatch Tool, markets predict a smaller quarter-point cut during the upcoming meeting, with a 75% probability of a 25 basis point reduction at the Fed's final meeting in December.

Fed officials are shifting focus towards bolstering the labor market instead of prioritizing inflation control. This, alongside JOLTS data and additional official figures, will provide further insights into the labor market’s state.

The total job openings in the US reached 7.443 million in September, down from a downwardly revised 7.861 million the previous month, partially due to declines in the health care and social assistance sectors. Economists had expected a reading of 7.980 million.

On a positive note, hires increased by 123,000 to 5.558 million, driven by growth in the manufacturing and retail trade industries.