US job offers rose only slightly in October, but hiring remained muted as employers continued to tread cautiously in an uncertain economic environment.
The modest increase in job vacancies suggests that while demand for workers has not disappeared, companies are still reluctant to expand their workforce due to lingering concerns about economic stability.
This came just a day before the United States Federal Reserve is expected to announce key benchmark interest rates for the US economy.
What do statistics say about job opportunities and recruitment?
The number of job openings rose by 12,000 to 7.6 million at the end of October, the Labor Department’s Bureau of Labor Statistics said in its Job and Labor Turnover Survey, or JOLTS, on Tuesday.
The number slightly beat economists’ expectations, with a Reuters poll forecasting 7.1 million job vacancies.
On the other hand, hiring in the United States fell by 218,000 to 5.1 million over the same period. The report also included data for September, which was canceled due to the 43-day shutdown of the federal government, Reuters reported.
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The BLS said it “temporarily suspended the use of the monthly alignment methodology for the October preliminary estimates” and added that “the use of this methodology will resume after the release of the final October estimates.”
In September, 7.658 million jobs were created, while hiring was 5.3 million. Together, the report suggests the labor market remains in what economists and policymakers describe as a “no-hire, no-fire” phase — a period marked by minimal layoffs but equally limited hiring.
What caused the labor market to stagnate?
The stagnation in the labor market can be attributed to a reduced supply of workers, driven by a decline in immigration that began in the last year of former President Joe Biden’s term and accelerated during the second administration of President Donald Trump.
In addition, the growing adoption of AI in certain job roles allows companies to avoid hiring new employees, especially for entry-level positions.
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Financial markets expect the Federal Reserve to cut its benchmark overnight interest rate by another 25 basis points to a range of 3.50%-3.75% on Wednesday, December 10, as concerns grow about a cooling labor market. The US central bank has already cut rates twice this year.
Earlier this year, committee members hesitated to cut rates ahead of the final easing of measures in September 2025, but this time the US Fed needs to be careful as high interest rates could push up the economy’s unemployment numbers.
When is the US employment report expected?
According to Reuters, policymakers will not have access to the November jobs report, which was also delayed by the government shutdown. The report, now scheduled for release next Tuesday, will include updated nonfarm payrolls data for October.
Meanwhile, the October employment survey has been cancelled, so the unemployment rate for October will not be available. It was caused by a shutdown that prevented authorities from collecting household survey data from which the unemployment rate is determined, Reuters reported.
