Jobs openings in the US dropped drastically to 10.1 million as on 31 August 2022, which is the lowest since the middle of last year and the highest in two and a half years.
Clearly, the demand for labour is strong but diminishing. This is good news for authorities trying to curb inflation. However, the pressure on wages will continue to remain high.
There were two vacancies for every unemployed person in July. The number fell to 1.7 openings for every jobless individual in August. Yet, the figure was way higher than the historical average.
This is the fifth consecutive month of fall in the number of vacancies in 2022, as per the Labour Department’s Turnover Survey. Job openings have crossed the 10 million mark for the 14th month in succession.
Layoffs have also decreased. With almost 2,36,000 less jobs, the maximum dip in job openings was seen in the healthcare space and in social assistance. Vacancies dipped by 1,83,000 in other sectors and by 1,43,000 in the retail space. Hospitality and financial sectors also posted fewer vacancies.
About 4.2 million people in the US gave up their jobs last month. This figure is slightly higher than the figure for July. The monthly jobs report is expected to be released later this week. Experts predict that the rate of joblessness will continue to remain 3.7 per cent.