In August, U.S. job openings unexpectedly rose, reflecting the ongoing strength of the American labor market. The Labor Department announced that employers listed 8 million job vacancies, an increase from 7.7 million in July, despite economists anticipating no significant change. This rise was particularly noted in the construction and state and local government sectors.
While layoffs decreased during the month, the number of Americans voluntarily leaving their jobs also fell, reaching its lowest point since August 2020, a time when the economy was struggling due to COVID-19 lockdowns.
Although job openings have steadily declined from a peak of 12.2 million in March 2022, they remain above pre-pandemic levels, illustrating the continued demand for labor.
The economy has shown unexpected resilience despite the Federal Reserve’s aggressive interest rate hikes aimed at curbing inflation, which has decreased from a peak of 9.1% in June 2022 to 2.5% in August.
However, hiring has slowed down, averaging only 116,000 new jobs per month from June to August, the weakest three-month average since mid-2020.
The upcoming Labor Department report for September is expected to reveal an addition of 143,000 jobs while keeping the unemployment rate steady at 4.2%.
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