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Aug. 1 (UPI) — The latest federal report shows that the number of job openings in the United States reached its lowest level in over a year in June, reflecting the effectiveness of policies aimed at slowing down the economy.
In its Job Openings and Labor Turnover Survey, the Labor Department revealed that there was minimal change in overall job creation in June. The number of job openings decreased by 34,000 to 9.6 million, the lowest since April 2021, indicating a decline in demand for new labor.
Job openings in the social assistance and healthcare sectors experienced an increase of 136,000 compared to May, while the transportation, warehousing, and utilities sectors saw the largest decline with a decrease of 78,000.
The number of people who voluntarily left their jobs in June decreased by 295,000 to 3.8 million, suggesting that individuals are more inclined to stay in their current positions once they find employment. The retail trades, healthcare, and social assistance sectors saw the largest decrease in resignations.
According to the Labor Department, total non-farm payrolls increased by 209,000 in June, supported by new hires in the government, healthcare, and construction industries. However, non-farm employment growth for the first half of 2023 averaged 278,000 jobs per month, a decline from the monthly average of 399,000 jobs in 2022.
President Joe Biden, who has been promoting his administration’s economic policies, highlighted the June data as evidence of his plan’s success, with a total of 13.2 million jobs created since he took office in 2021.
The increase in new hires presents a challenge for the Federal Reserve, which is implementing successive rate hikes to slow down the economy. However, long-term data indicates that the Fed’s policy may be having the desired effect.
Despite ongoing inflationary pressures, consumer confidence is on the rise, and the latest gross domestic product readings indicate a better-than-expected performance, suggesting that the U.S. economy will avoid recession this year.
Last month, the Federal Reserve opted for caution by announcing a 25-basis-point rate hike, leaving the federal funds rate range at a 22-year high of 5.25% to 5.5%.
In a statement following the announcement, the Fed expressed its aim to achieve maximum employment, which refers to the highest level of employment a given economy can sustain without causing higher inflation. More jobs lead to increased cash flow, stimulating demand and driving prices higher.
