US jobs fall to 14-month low in August – Bloomberg

US job openings fell more than expected in August, hitting the lowest level in 14 months since June 2021. The decline is the biggest since the early days of the coronavirus pandemic and could be a welcome sign to the Fed, which wants to slow down the demand for labor without causing a surge in unemployment.

The drop of about 1.1 million is the largest since April 2020. Consistent with a slowdown in labor demand, it reflects changing consumer trends, rising interest rates and a weaker economic outlook.

Although the number of job openings was still fairly high, the number of job openings per unemployed person was around 1.7, down from around 2 in the previous month. This was the lowest level since November last year.

“August saw a sharp decline in the ratio of job openings to the unemployed, but such sharp declines are usually a sign of a recession,” said Eliza Winger, an economist at Bloomberg Economics. early next year and the FOMC will likely raise interest rates by 0.5 percentage points rather than 0.75 percentage points at its meeting in November “It gives us room to end the current tightening cycle.”

Some of the drop in job openings reflected companies stopping hiring rather than replenishing staff, as hiring in August was about the same as the previous month. Job openings fell significantly in healthcare and other services.