Aug. 29 (UPI) — Recent data published by the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Summary reveals that fewer workers are quitting their jobs and the number of new job listings has declined for the third consecutive month in July. This suggests a degree of economic cooling within the broader economy.
In July, job openings decreased to 8.8 million, a decline of approximately 338,000, signaling a trend contrary to expectations. Several other economic indicators corroborate this slowdown in the economy.
Job openings have declined in professional services, social assistance, and government jobs, with services experiencing the greatest slowdown. However, there has been an increase in job opportunities within the transportation, warehousing, and utilities sectors. Despite the modest decline, job openings are currently at their lowest level in nearly two years.
The number of voluntary job separations, seen as a gauge of market confidence, decreased by 253,000 to 3.5 million in July. Most individuals leaving their jobs voluntarily were employed in the hospitality or food services industry.
A decrease in the number of people actively searching for new jobs indicates a loss of confidence in the market. Additionally, recent strikes, such as those led by members of the United Autoworkers Union, may further contribute to the decline in the number of job quits as workers fear missing a paycheck.
Data shows that the number of individuals who were fired or laid off remained statistically consistent with June levels.
Various indicators, including mortgage applications and a slump in manufacturing, point towards a slowdown in the economy. Last week, the Federal Reserve hinted at the potential need for further rate hikes to cool the economy if inflation continues to surpass the target rate of 2%.
“Although job openings remain high, there is a downward trend,” stated Fed Chair Jerome Powell. “Payroll job growth has significantly slowed, total hours worked has plateaued in the past six months, and the average workweek has decreased towards the lower end of its pre-pandemic range, reflecting a gradual normalization in labor market conditions.”
