Increase in US job vacancies in September
The unexpected increase in job opportunities raises hopes that the US Fed will raise rates further to further reduce inflation.
US job vacancies increased in September, indicating that the labor market remained robust, which would moderate financial market expectations that the US Federal Reserve will scale back its aggressive interest rate increase in December.
At the end of September, there were about 1.9 job opportunities for every unemployed person, suggesting that salary growth may continue to be strong. The Institute for Supply Management (ISM) survey released on Tuesday revealed that raw material costs dropped in October for the first time in 28 months, giving the Fed significant help in its fight against inflation.
Investors who are looking for indications that inflation is easing and that the Fed might think about holding off on raising interest rates will be disappointed by the most recent jobs data, which was released ahead of a more comprehensive employment report from the US Bureau of Labor Statistics on Friday.
Jason Draco, head of the asset allocation for the Americas at UBS Global Wealth Management, stated that this “really reinforces the belief that the Fed has to do further raising.” The Fed continues to find the labor market to be overly tight.
On Wednesday, the US central bank is anticipated to announce another 0.75 percent rate increase as it works to reduce the demand for labor and the entire economy in order to lower inflation to its objective of 2 percent.
Wall Street worries that the central bank is overreacting in its attempts to slow the economy, running the risk of triggering a recession.
According to Christopher Rupkey, chief economist at FWDBONDS, a financial markets research business in New York, “the good news of more job vacancies for everyone will be bad news for everyone if Fed officials become convinced they need to boost interest rates higher and faster than before.” The question of whether 10 million job vacancies will thwart an impending recession is “a head-scratcher.”
The US Department of Labor reported in its monthly Job Openings and Labor Turnover Survey, or JOLTS report, that the number of job openings, a gauge of labor demand, climbed by 437,000 and reached 10.7 million by the end of September. Data for August was updated to reflect 10.3 million openings rather than the 10.1 million that had been previously reported.
Reuters polled economists, who predicted 10 million job openings. The industries of lodging and food services had 215,000 more openings. Healthcare and social support job openings rose by 115,000, while the transportation, warehousing, and utility industry reported 111,000 more open positions.
However, there were 104,000 fewer job opportunities in the wholesale trade. The number of openings in the financial and insurance sector decreased by 83,000. From 6.3 percent in August, the rate of job opportunities rose to 6.5 percent. Employment decreased from 6.3 million in August to 6.1 million.
In the durable goods manufacturing sector, hiring declined by 57,000, while in state and local government education, hiring dropped by 40,000.
workers are still leaving
The number of people who voluntarily left their employment fell from 4.2 million in August to about 4.1 million. Policymakers and economists use the quits rate (2.7%) as a gauge of confidence in the labor market.
From 1.5 million layoffs, there were just 1.3 million. The December policy meeting was expected to see the Fed switch to a half-point rate increase, according to financial markets.
Realme 10 Gets FCC Certification, Key Specifications Tipped Ahead of Launch
The Fed has tightened policy at its fastest rate in at least a generation, increasing its benchmark overnight interest rate from near zero in March to the current range of 3% to 3.25 percent.
https://www.aljazeera.com/economy/2022/11/1/us-job-openings-jump-in-september