Softer demand? US job openings fall in June to 9-month low

by | Aug 2, 2022 | World

Job openings in the United States fell by 605,000 to 10.7 million in June, a larger decline than expected.US job vacancies fell in June to their lowest level in nine months, suggesting that labour market tightness may be loosening up a bit amid mounting economic challenges.
The Job Openings and Labor Turnover Survey, or JOLTS, released by the US Labor Department on Tuesday, revealed that job openings fell to 10.7 million in June from a higher-than-expected 11.3 million in May. The fall of 605,000 was the most since April 2020.
“This improvement in labor market balance suggests that wage growth should slow in the second half of 2022,” economists at Goldman Sachs said in a Tuesday note.
Retail and wholesale trade sectors saw a decrease of 343,000 and 82,000 positions, respectively. Construction also saw a decline of 71,000 openings.
On the upside, job openings increased 79,000 in healthcare and social assistance.
Despite the drop, there are still a lot of open positions. As a result, labour expenses have increased. But many Americans are still seeing salary growth fall behind surging inflation.

The US labour market has remained robust as the wider economy experiences challenges. Last week, the Federal Reserve raised interest rates 75 basis points for the second consecutive time. It is likely to continue to increase borrowing costs at its next meeting in September.
“The current picture is plain to see. The labour market is extremely tight, and inflation is much too high,” Fed Chair Jerome Powell …

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