US Job Openings Rebound in August; Hiring Remains Soft, Reports Reuters

U.S. Job Openings See Unexpected Rise Amid Soft Hiring

WASHINGTON – U.S. job openings experienced an unexpected increase in August, breaking a trend of two consecutive monthly declines. However, hiring remained subdued, reflecting a cooling labor market.

According to the Labor Department’s Bureau of Labor Statistics, job openings surged by 329,000 to reach 8.040 million by the end of August, as reported in the Job Openings and Labor Turnover Survey (JOLTS). Revised data for July indicated 7.711 million unfilled positions, up from the previously reported 7.673 million. Economists had predicted job openings would total about 7.660 million. Meanwhile, hiring decreased by 99,000, bringing the total to 5.317 million, while layoffs fell by 105,000 to 1.608 million.

In response to mounting concerns regarding the labor market, the Federal Reserve reduced its benchmark interest rate by an unusually significant 50 basis points to a range of 4.75%-5.00%. This marked the first cut in borrowing costs since 2020.

At a recent conference, Fed Chair Jerome Powell acknowledged that "labor market conditions have clearly cooled over the past year," but emphasized that the Federal Open Market Committee is not in a hurry to rapidly reduce rates.

The Fed is expected to implement further rate cuts in November and December, with attention now turning to the September employment report, scheduled for release on Friday.

Analysts predict that nonfarm payrolls likely grew by 140,000 jobs last month, following an increase of 142,000 in August. This figure is notably below the average monthly gain of 202,000 jobs recorded over the past year.

The unemployment rate is anticipated to remain steady at 4.2%, a rise from 3.4% in April 2023, driven in part by an increase in immigration that has bolstered the labor supply.