Job openings fall below 10 million for first time in nearly two years
Zachary Halaschak
Video Embed
The number of job openings in the United States tumbled below 10 million in February, the lowest level in nearly two years.
There were about 9.9 million job openings across all sectors that month, according to the Bureau of Labor Statistics Job Openings and Labor Turnover Survey updated Tuesday. The decline is a sign that the labor market, which has held up despite a series of major threats the past two years, is softening.
The largest decreases in job openings were in professional and business services; healthcare and social assistance; and transportation, warehousing, and utilities.
“Over a million fewer employment opportunities for American workers in just the first couple of months this year is evidence the strongest labor market since the 1960s is starting to show a few cracks,” said Chris Rupkey, chief economist at FwdBonds. “If openings lead job hirings, payroll employment is set to slow in the months ahead, which should help keep inflation pressures in check.”
About 4 million workers quit their jobs in November, up from 3.9 million the month before. The figure is equivalent to about 2.6% of the workforce.
HOME PRICES RISE FOR FIRST TIME IN MONTHS IN SIGN OF MARKET STABILIZING
The so-called quits rate measures the number of people who voluntarily left their jobs and includes those who left their previous employment for another job and people who quit but are confident they will soon find new employment, given the tightness in the labor market.
While the labor market is slowly loosening, it is still remarkably hot. The Federal Reserve has been hiking interest rates for a year now in an effort to drive down inflation. Doing so is supposed to cause the jobs market to cool, relieving inflationary pressure.
Still, the economy added 311,000 jobs in February, more than expected, and the unemployment rate ticked up a bit to 3.6%, which is a very low figure by historical standards. The unemployment rate had previously dropped to a shocking 3.4%, the lowest since 1969.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Friday’s jobs report will show how many jobs the economy added in March. It is expected that the economy notched some 240,000 jobs and that the unemployment rate will remain around the level it is at now.
The Fed last met in March, when it opted to raise rates by a more modest quarter of a percentage point. The next meeting of the Federal Open Market Committee is set for early May. Most investors expect that the central bank will pause hiking at that time, although some still expect a quarter-percentage-point revision.