US employment data August: Job vacancies fall, layoffs fall as labor market remains steady | Today’s news
U.S. job vacancies fell in August, but layoffs remained near historic lows, suggesting the labor market continues to show signs of stability despite subdued hiring and economic uncertainty.
Job openings, a measure of labor demand, fell by 256,000 to 7.079 million on the last day of August, the U.S. Department of Labor’s Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey (JOLTS) on Tuesday.
The July figure was revised higher to 7.335 million from a previously reported 7.271 million. Economists polled by Reuters had expected 7.225 million job openings in August.
The supply of jobs is decreasing
The job vacancy rate fell slightly to 4.3% in August from 4.4% in July, suggesting some cooling in demand for workers.
The JOLTS data faced concerns about a low employer response rate, which dropped significantly compared to the period before the COVID-19 pandemic. Some economists therefore warned against reading too much into the monthly movements in the survey.
Still, the latest numbers suggest the job market may be regaining stability after a tough summer.
Layoffs remain historically low
One of the key signals in the report was the continued weakness in layoffs. Layoffs and layoffs fell by 61,000 in August to 1.641 million, while the layoff rate fell to 1.0% from 1.1% in July.
Employers remain reluctant to make large layoffs, helping to support overall labor market stability, although businesses have been cautious about adding new hires.
Hiring increased by 46,000 to 5.192 million, while the hiring rate rose to 3.3% from 3.2%.
August payrolls showed stronger gains
The JOLTS report comes ahead of the September employment report due on Friday.
U.S. nonfarm payrolls rose 162,000 in August, the strongest monthly gain in five months. Economists polled by Reuters expect payrolls to rise by 90,000 in September, while the unemployment rate is forecast to remain at 4.1%.
The September employment report will provide a broader assessment of whether the recent stabilization in the labor market is continuing.
The Fed’s focus is shifting to inflation
A relatively stable labor market could give the Federal Reserve more room to focus on inflation and other price pressures.
The U.S. central bank raised its overnight benchmark interest rate by 25 basis points to 3.75%-4.00% this month, the first rate hike in three years, and signaled the possibility of further increases in borrowing costs, according to data provided.
