US job openings rise in Oct, Though hiring slows

U.S. job openings rebounded in October after hitting a 3.5-year low in September, signaling that businesses continue to seek workers despite a slowdown in hiring. Job openings increased by 5%, reaching 7.7 million, up from 7.4 million in September, according to the Labor Department. However, this figure remains significantly lower than the 8.7 million job postings from a year ago.

October saw a notable rise in openings within professional and business services, which include roles like engineers and accountants, as well as in the restaurant, hotel, and IT sectors. Additionally, the number of people quitting their jobs increased, reflecting confidence in the labor market. Layoffs dropped to just 1.6 million, marking the lowest level seen in two decades, prior to the 2020 pandemic.

These numbers suggest a stabilization of the job market at a moderate level, with hiring slowing but layoffs remaining unusually low. The unemployment rate remains low at 4.1%, although job growth in October had slowed sharply due to hurricanes and a strike at Boeing.

Cory Stahle, an economist at job site Indeed, noted, "The fact that job openings ticked up is always an encouraging sign." The latest data shows that for each unemployed worker, there are 1.1 available jobs, which remains a healthy ratio, though down from the peak of two job openings per unemployed person two years ago.

The report, known as the Job Openings and Labor Turnover Survey (JOLTS), also revealed a slight decline in hiring, with 5.3 million hires in October, down from 5.6 million in September. This drop is partly attributed to hurricane-related disruptions.

While the JOLTS data is separate from the official jobs report, which will be released Friday, the figures suggest that the U.S. job market is stabilizing, even if the pace of growth has slowed. November’s jobs report is expected to show a gain of around 210,000 jobs, a significant rebound from the 12,000 jobs added in October.

The rise in the number of people quitting their jobs to 3.4 million in October suggests confidence in the job market, as people feel secure enough to pursue new opportunities. The Federal Reserve is closely monitoring these trends, as any signs of significant weakening in hiring could prompt them to lower interest rates to support borrowing and economic activity.

Source: With inputs from agencies