The US labour market showed signs of a steady slowdown in October, with job openings increasing moderately and layoffs declining, according to the latest Job Openings and Labor Turnover Survey (JOLTS) report released by the Bureau of Labor Statistics on Tuesday. Job openings, a key indicator of labour demand, rose by 372,000 to 7.744 million at the end of October. However, the September figures were revised downward to 7.372 million from the initially reported 7.443 million. Economists polled by Reuters had anticipated 7.475 million vacancies. Labour Market Dynamics While job openings increased, hires dropped by 269,000 to 5.313 million, and layoffs fell by 169,000 to 1.633 million. These figures suggest a gradual cooling of the labour market rather than a sharp contraction. Hurricanes and strikes also impacted October’s labour market data. Rebuilding efforts in storm-affected regions and the resolution of strikes at Boeing and another aerospace company are expected to contribute to a ...
The Labor Department reported on Thursday that initial claims for state unemployment benefits dropped by 15,000 to a seasonally adjusted 227,000 for the week ending Oct 19, below economists' forecast of 242,000. Unadjusted claims declined by 22,634, with notable decreases in states like Georgia, New York, and Texas.
The report attributed the recent decline in new claims partly to Hurricane Helene, which had temporarily driven claims higher earlier in the month. However, the full impact of Hurricane Milton on the labor market is yet to be reflected in the data.
Despite these distortions, economists believe the labor market is softening, though not collapsing. Carl Weinberg, chief economist at High Frequency Economics, noted that Federal Reserve policy aims to support the economy and labor market, with gradual rate cuts potentially helping avoid a recession.
The number of continuing claims, a proxy for hiring activity, rose by 28,000 to a seasonally adjusted 1.897 million for the week ending Oct 12, marking the highest level since November 2021. This increase coincides with the survey period for the October unemployment rate, which will be released just before the Nov 5 presidential election.
The US jobless rate dropped to 4.1% in September from 4.2% in August, following a significant rise earlier this year that triggered the Federal Reserve's first major 50-basis-point rate cut in 2023. The Fed is expected to cut rates by 25 basis points again next month as it continues to manage inflation and economic uncertainty.
Comments
Post a Comment