US Job Openings Rise To Five-Month High, But Layoffs Also Up
The number of available positions rose slightly to 7.67 million in October from 7.66 million in the prior month, according to Bureau of Labor Statistics data published Tuesday.
US job openings picked up in October to the highest level in five months, though less hiring and more layoffs pointed to a continued slowdown in the labor market.
The number of available positions rose slightly to 7.67 million in October from 7.66 million in the prior month, according to Bureau of Labor Statistics data published Tuesday. Vacancies exceeded the median estimate in a Bloomberg survey of economists. The release of both monthly figures was delayed because of the government shutdown.
While openings advanced, it was only was driven by a handful of industries like retail and wholesale trade industries, as well as health care. The latter has been the biggest driver of job growth this year.
Meanwhile, the number of layoffs in October rose to 1.85 million, the highest since the start of 2023, according to the JOLTS report. Dismissals picked up in leisure and hospitality, as well as manufacturing. And hiring declined by 218,000 from the month prior to 5.15 million.
That’s consistent with more modest demand for labor in some sectors as employers adjust to a higher-cost environment, partly due to US trade policy, and lingering economic uncertainty. Other data point to a pickup in job-cut announcements.
With concerns building about the labor market, investors widely expect Federal Reserve officials to lower interest rates on Wednesday by a quarter percentage point. US Treasury yields rose and the S&P 500 remained higher after the JOLTS report.
The so-called quits rate, which measures the percentage of people voluntarily leaving their jobs each month, fell to the lowest since May 2020. This suggests people are less confident in their ability to find a new position.
Some economists have questioned the validity of the JOLTS data, in part due to the survey’s low response rate and sometimes sizable revisions. A separate index by job-posting site Indeed, which is reported on a daily basis, showed openings declined in October from the month prior, but rebounded in November.
