The number of unfilled positions in the US grew in August, prompting concerns about whether the labour market is slowing down quickly enough to satisfy the Federal Reserve, which is considering hiking interest rates further to fight inflation.
According to the most recent Job Opening and Labour Turnover Survey, or JOLTS report, which was released on Tuesday, there were 9.6 million available positions at the end of August, up from 8.92 million in July. Bloomberg questioned economists who predicted 8.82 million job opportunities in July.
The quit rate, which economists regularly monitor since high quit rates are viewed as an indication of worker confidence, also showed a fall in the report. The quit rate remained constant in August at 2.3%.
The Federal Reserve, whose chair Jerome Powell has frequently stated the institution is looking for a “better balance” between labour supply and demand, is unlikely to be pleased with the news.
In an address at the Jackson Hole Economic Symposium in August, Powell stated, “We expect this labour market rebalancing to continue.” “Evidence that the labour market tightness is no longer easing could also call for a monetary policy response.”
investors continue to be concerned about future tightening of monetary policy. With a 1.4% decline, the tech-heavy Nasdaq Composite (IXIC) was the largest underperformer of the morning session. When compared to the S&P 500 (GSPC), the Dow Jones Industrial Average (DJI) dropped by more than 250 points, or 0.8%.
According to a research note by Oxford Economics’ head US economist Nancy Vanden Houten, “the Fed continues to monitor [JOLTS] as a gauge of labour market conditions and on the surface, it’s telling us that labour market conditions remain tight.” The Fed won’t base its policy choices on a single JOLTS report, but it also doesn’t maintain the likelihood of another rate hike.
On Friday, another assessment of the labour market is anticipated. According to the September jobs report, the economy added 170,000 jobs in August, and the unemployment rate is predicted to have decreased slightly to 3.7%.