U.S. job openings fell more than expected in March, while layoffs rose sharply, suggesting a softening in labor demand.
| Key Point |
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Upper row: number of job openings, lower row: number of layoffs
Source: U.S. Bureau of Labor Statistics
The figures suggest a modest slowdown in labor demand, ultimately resulting in a more balanced job market andThis is expected to curb upward pressure on wages. While some jobs, including tech companies and financial institutions, have cut jobs, the overall labor market remains resilient.
The number of layoffs increased mainly in the construction industry, accommodation-related industries, the restaurant industry, and healthcare, reaching the highest level since December 2020. The number of people leaving jobs has decreased, suggesting that concerns about securing employment have begun to emerge.
The turnover rate, which is the ratio of voluntary turnover among all employees, fell slightly to 2.5%, the lowest level in two years. About 3.9 million people voluntarily left their jobs. The decrease was mainly in the lodging and restaurant industries.
The number of job openings for each unemployed person decreased slightly to 1.6, the lowest since October 2009. Before the new coronavirus became a pandemic, it was hovering around 1.2.
The Federal Reserve has been watching the ratio closely, citing the persistently high job openings as a reason it can keep the labor market and, therefore, inflation in check without soaring unemployment.
“The labor market is definitely starting to slow,” said Bloomberg Economics economist Stuart Paul. The labor market will need to deteriorate more rapidly if we are to shift towards ensuring maximum employment.”
The Labor Department’s Trends in Employment Survey (JOLTS) is likely to be a key indicator of the labor market in the coming months, as companies tend to freeze hiring before layoffs begin. The number of new hires in March was almost unchanged from the previous month.
of JOLTSResponse rateSome economists question its credibility because of the low By the end of last year, the response rate had fallen to about 31%, about half what it was three years ago.
For details of JOLTS, please see the statistics table.
Original title:US Vacancies Fall, Layoffs Jump in Sign of Softer Job Market(excerpt)
(Add and update stats details)
2023-05-02 14:14:05
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