The number of U.S. job openings in February was almost unchanged from the previous month. This suggests that demand for labor is stabilizing at a high level.
Key Point
- The number of U.S. job openings increased slightly to 8.756 million in February.
- The median forecast by economists is 8.73 million.
- The previous month was revised downward to 8,748,000 (preliminary figure: 8,863,000)
Hiring also increased in February.
Ideally, the U.S. Federal Reserve would like to see a softening of the labor market through fewer job openings rather than job losses. As long as job openings remain high, wages are likely to continue rising, which could lead to persistent inflation.
On the other hand, there are signs that the labor market is softening. The number of job openings decreased in information, medical, and retail. Layoffs also increased to the highest level in almost a year. Layoffs accelerated in the entertainment and hospitality sector.
The turnover rate, which is the percentage of people who voluntarily leave their jobs, remained unchanged at 2.2%, the lowest level since 2020. Low turnover rates suggest that job seekers are less confident in finding another job in the current market, or that their wage increases if they do change jobs are shrinking.
The number of job openings for each unemployed person was 1.36, the lowest level in four months.
Stuart Paul, an economist at Bloomberg Economics, said, “While the number of unemployed people is increasing, the number of job openings for each unemployed person is decreasing, and upward pressure on wages is expected to ease further in the future.As the labor market adjusts, wages will rise.” “As pressure eases, the Fed will feel more confident about cutting rates this summer.”
Please see the table for details on the U.S. Department of Labor Employment Dynamics Survey (JOLTS).
Original title:US Job Openings Holding Steady Shows Labor Market Resilience(excerpt)
US Feb. Job Openings Rose to 8.756M, Above Est.
(Adds comment from economist and updates)
2024-04-02 14:08:16
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