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US Jobs: Openings Up, Hiring Down to COVID Levels
3 Sep
Summary
- Job openings in July remained steady, but hiring slowed significantly.
- Employers avoided mass layoffs but are reluctant to expand payrolls.
- The job market is characterized by low hiring, low firing, and low quitting.
The labor market in July was characterized by stability, or perhaps stagnation, with job openings holding at 7.3 million. Hiring rates, however, declined to 3.2% from 3.4% in June, reflecting a notable slowdown in job creation that brings it close to COVID-era levels. This indicates that employers are becoming increasingly cautious, refraining from expanding payrolls amidst prevailing economic uncertainties and rising borrowing costs.
Despite the deceleration in hiring, the rate of layoffs edged down, and the quitting rate also decreased. This suggests a low-mobility labor market where workers have fewer opportunities to seek higher pay elsewhere. The absence of widespread layoffs could provide the Federal Reserve with the flexibility to prioritize inflation reduction by potentially raising interest rates further.
