US job openings fall in August; layoffs remain low
SPY•US job openings fell by 256,000 to 7.079 million in August, while layoffs dropped by 61,000 to 1.641 million. The openings rate declined to 4.3%, and the layoffs rate slipped to 1.0%.
1. Openings declined
Job openings fell by 256,000 to 7.079 million on the last day of August, the Labor Department’s JOLTS report showed. July openings were revised up to 7.335 million from 7.271 million, while economists had forecast 7.225 million openings for August. The openings rate fell to 4.3% from 4.4%.
2. Layoffs stayed low
Hiring rose by 46,000 to 5.192 million, and the hires rate increased to 3.3% from 3.2%. Layoffs and discharges dropped by 61,000 to 1.641 million, with the rate declining to 1.0% from 1.1%. The article said employers were reluctant to ramp up hiring and described historically low layoffs as a main driver of labor market stability.
3. Fed and jobs outlook
The article said labor market stability gives the Federal Reserve scope to focus on inflation. The central bank raised its benchmark rate by 25 basis points this month to a 3.75%-4.00% range and flagged further increases. Markets were pricing in a roughly 70.3% chance of another increase in October, while economists surveyed expected September payrolls to rise by 90,000 and the unemployment rate to hold at 4.1%.
