US Markets
Tuesday, October 3rd, 2023 3:12 pm EDT
Key Points
- In August, U.S. job openings unexpectedly surged to 9.61 million, marking a significant increase of nearly 700,000 from the previous month and surpassing the Dow Jones estimate of 8.8 million. This surge indicates that the labor market remains tight and robust despite efforts by the Federal Reserve to slow the economy.
- While job openings saw a substantial rise, new hires only modestly increased to 5.857 million, with a minimal gain of 35,000. The surge in job openings was particularly notable in the professional and business services sector, which saw an increase of 509,000 openings. This unexpected development may put additional pressure on the Federal Reserve to maintain elevated interest rates, causing a decline in stock prices.
In August, U.S. job openings unexpectedly surged, signaling that the labor market remains tight and robust despite efforts by the Federal Reserve to slow the economy. The Labor Department’s monthly Job Openings and Labor Turnover Survey revealed that job openings reached 9.61 million for the month, a significant increase of nearly 700,000 from July and surpassing the Dow Jones estimate of 8.8 million. However, new hires saw only a modest increase, reaching 5.857 million, up by just 35,000. Much of the increase in job openings was in professional and business services, with a burst of 509,000. The tighter labor market could put additional pressure on the Federal Reserve to maintain elevated interest rates, causing stocks to fall. This data is significant as the Fed closely monitors the JOLTS report for signs of labor slack. While job openings had been declining in recent months, the August report indicates that the central bank’s interest rate hikes are impacting the labor market, although the supply-demand mismatch has improved, with openings now outnumbering available workers at a ratio of 1.5 to 1. This report precedes the September nonfarm payrolls count, which economists expect to show an increase of 170,000 jobs. Worker confidence, as measured by quits, remained relatively stable, as did total separations and layoffs.
For full original article on CNBC, please click here: https://www.cnbc.com/2023/10/03/august-job-openings-top-9point6-million-more-than-expected-as-labor-market-remains-strong.html
