US job openings slumped in October to the lowest level since March 2021, adding to evidence that the labor market is cooling.
Available positions decreased to 8.7 million from a downwardly revised 9.4 million in the prior month, the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey showed Tuesday. Hiring edged lower. Layoffs were little changed.
The openings figure was below all estimates in a Bloomberg survey of economists. The decline was broad-based across sectors, with notable drops in health care, financial activities and accommodations and food services.
The so-called quits rate, which measures voluntary job-leavers as a share of total employment, held for a fourth month at the lowest level since early 2021. A moderation in quits may imply Americans are feeling less confident in their ability to find other jobs in the current market or reflect a smaller wage premium on offer for job-switchers.
With employers scaling back hiring and wage growth decelerating, it’s unclear how much longer the job market will underpin strong consumer spending.
Federal Reserve officials are expected to leave interest rates unchanged when they meet next week, and have emphasized the trajectory of the labor market will help inform future decisions. Investors expect rate cuts to begin as soon as March, according to futures.
The ratio of openings to unemployed people slid to 1.3, the lowest since mid-2021. While still somewhat indicative of a tight labor market, the figure has eased substantially over the past year. At its peak in 2022, the ratio was two-to-one.
The data come just a few days ahead of the government’s monthly jobs report, which is currently forecast to show employers added some 189,000 jobs in November. The unemployment rate is seen holding at the highest level in nearly two years.
A separate report out Tuesday showed the US service sector expanded at a faster pace in November as business activity and employment picked up.
Some economists have questioned the reliability of the JOLTS statistics in part because of the survey’s low response rate.