Another sign that the US job market remains hot after US job openings rise unexpectedly in August
By Paul Wiseman, The Associated Press on October 3, 2023.
WASHINGTON (AP) – U.S. job openings rose unexpectedly in August, another sign the U.S. labor market remains strong in the face of higher interest rates. American employers posted 9.6 million job openings in August, up from 8.9 million in July, the Labor Department said Tuesday. Economists had expected only another 8.9 million vacancies. The number of layoffs and of people quitting their jobs – a sign of confidence in their prospects – were both essentially unchanged from July. The inflation fighters at the Federal Reserve want to see the red-hot U.S. job market cool off, reducing pressure on businesses to raise pay, which can feed into higher prices. The central bank has raised its benchmark rate 11 times since March 2022 to combat inflation. Fed Chair Jerome Powell has expressed hope that hiring would moderate in the least painful way possible – with fewer vacancies and less job-hopping rather than through layoffs. So far, the economy has cooperated. Openings and quits are down from their peaks, while the unemployment rate (at 3.8% in August) remains near a half-century low. And inflation, which hit a four-decade high in mid-2022, has decelerated markedly over the past year, raising hopes that the Fed can achieve a so-called soft landing – raising rates just enough to rein in rising prices without tipping the economy into a recession. 6-5
