Us Job Openings Reached Lowest Level

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Us Job Openings Reached Lowest Level

Us Job Openings Reached Lowest Level Of Three Years

During November 2023, the job openings in the USA touched a 3-year low, which shows that the labour market is no longer resilient.

Given the labour market's weakness, the prospects of rate cuts in 2024 have increased manifolds. But we also need to consider that the Fed will also look at other factors besides this to decide on rate cuts.

Even US citizens feel the labour market's changed dynamics still need to change. According to the Labor Department's report, the number of citizens who quit their jobs is now at the 2021 lows. However, it is noted here that these were all high-paying jobs.

Wage Growth And Jobs Openings Are Down

The bigger picture is that the people changing jobs are at historic levels. Against this backdrop, the wage growth will also slow down in the coming months. In the end, all of this will lead to lower inflation in the USA.

Despite this, the labour market is still strong, as the ratio of unemployed people to job openings is 1.4. In October, the ratio was near 1.36, showing signs of consistent improvement.

As for layoffs during the month, they were also recorded at 1-year lows. This has increased the hopes that the Federal Reserve will soon shift to rate cuts.

According to LPL Financial's experts, the Federal Reserve has a lot of room to pull the trigger on rate cuts.

Job openings are one of those indicators that are used to test labour demand. By the end of November, the last figure was 8.790 mln, with a decrease of around 62K.

If we conclude all of this, wage growth is decreasing while the number of new jobs has also declined. However, the labour market is still strong, so the Federal Reserve is under no pressure.

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