American employers posted fewer job openings in June because the economy contends with raging inflation and rising rates of interest.
Job openings fell to a still-high 10.7 million in June from 11.3 million in May, the Labor Department said Tuesday. Job openings, which never exceeded 8 million in a month before last 12 months, had topped 11 million every month from December through May before dipping in June.
In its monthly Job Openings and Labor Turnover Survey, the Labor Department said that the variety of Americans quitting their jobs fell barely but remained high at 4.2 million in June while layoffs fell to 1.3 million from 1.4 million in May.
The job market has been resilient to this point this 12 months, and corporations have complained that it is tough to fill open positions: Employers have added a median of 457,000 a jobs a month in 2022; and unemployment is near a 50-year low. That’s one reason many economists consider the economy just isn’t yet in a recession regardless that gross domestic product, the broadest measure of economic output, has contracted for 2 quarters in a row — one rule of thumb for the onset of a downturn.
“If the economy is rolling over, the labor market had apparently not gotten the memo yet as of the top of June,″ said Stephen Stanley, chief economist at Amherst Pierpont Securities. “A case could possibly be made for slight moderation from an egregiously overheated state, but that’s about so far as I’d go in assessing labor market conditions.”
The Labor Department’s jobs report for July, out Friday, is anticipated to indicate that employers tacked on one other 250,000 jobs last month.REUTERS
The Labor Department’s jobs report for July, out Friday, is anticipated to indicate that employers tacked on one other 250,000 jobs last month, which can be a healthy number in normal times but can be the bottom since December 2020, when the worldwide economy was being ravaged by the pandemic. Economists also expect that unemployment stayed at 3.6% for the fifth straight month, based on a survey by the information firm FactSet.
The economy is under pressure because the Federal Reserves raises rates of interest to combat inflation that’s running on the fastest pace in 4 many years.