US: In November, There Were Fewer Job Openings Than Anticipated
The US job market is still tight. According to the JOLTS data provided by the labour department, the demand for employment remained strong in the U.S. in November as businesses continued to hunt for people to fill positions despite worries about the prospect of a recession.
The survey revealed that there were 10.46 million job openings, which was higher than FactSet’s prediction of 10 million but somewhat less than the figure for October.
Federal Reserve officials constantly watch the JOLTS survey for indications of labour market softening, which are taken into account when making monetary policy decisions. It is predicted that in light of today’s data, the FED may continue with interest rate rises at a greater pace than anticipated.
A Rise In Resignations And Terminations, As Well As A Decrease In Hiring
Job openings as a share of the labour force stayed at 6.4%, showing that there is still a strong need for employees despite the Fed’s attempts to “cool” the economy and lower inflation, which has been fueled in part by wage increases.
In addition to the macroeconomic front, figures published today show that the US manufacturing sector shrank for the second consecutive month. The proportion of businesses exhibiting growth was represented by the ISM Manufacturing Index for December, which was 48.4%. This number was basically in line with the 48.5% prediction provided by Dow Jones. A measurement with a shrinkage factor < 50%. The ISM study also indicated that there is stability in the manufacturing sector’s labour market.
The JOLTS survey revealed a little decline in hiring and a slight rise in redundancies on the employment front. However, there is little evidence of a significant worsening of the labour market in the study.
Resignations increased by 126,000, increasing the rate—which measures employees’ confidence in their ability to quit their positions and find new employment—by a tenth of a percentage point to 2.7%.
The Ratio Of Open Positions To Available Employees Was 1.7 To 1
Markets are now anticipating the publication of the labour ministry’s recruiting report later this week, which is anticipated to indicate a rise in hiring of 200,000 jobs.