US Labor Market Still Robust... September Job Openings Increase

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] A new indicator has emerged showing that despite ongoing concerns about economic slowdown, labor demand among U.S. companies remains robust.

According to the September Job Openings and Labor Turnover Survey (JOLTS) released by the U.S. Department of Labor on the 1st (local time), the number of job openings at U.S. companies in September was 10.7 million, up from 10.3 million in August. This figure far exceeded expert forecasts of 9.8 million. The number of job openings in the U.S. is considered a key indicator for measuring the health of the labor market and the overall economy.

The ratio of job openings per unemployed person, closely monitored by the Federal Reserve (Fed), fell to 1.7 in August but rose again to 1.9 in September. Additionally, the number of voluntary quits in September was 4.1 million, exceeding 4 million for 15 consecutive months. This indicates that many workers still voluntarily leave their jobs, believing they can easily find better employment, suggesting that the labor market remains tilted somewhat in favor of workers.

These indicators are expected to influence the ongoing Fed discussions on interest rate decisions. At the two-day November Federal Open Market Committee (FOMC) meeting starting today, the Fed is widely expected to implement an additional giant step (a 0.75 percentage point rate hike). Furthermore, it is reported that the Fed is considering a so-called "speed adjustment" to reduce the rate hike to 0.5 percentage points starting in December.

However, given that the labor data released today confirms that the labor market remains strong and upward inflationary pressures persist, there are observations that this could impact the Fed's decision.

Meanwhile, the New York stock market, which started higher on expectations of a Fed pivot (policy shift), turned negative across the board after the report's release and continues to decline. As the market nears closing, the Nasdaq index, which is sensitive to interest rates and tech-heavy, is trading about 0.7% lower compared to the previous session.

This content was produced with the assistance of AI translation services.