US job openings fell to 8.18 million in June from 8.23 million in May. Photo credit: Firstpost
US job openings slightly decreased last month, reflecting a cooling labour market as high interest rates continue to take effect. The Labor Department reported 8.18 million job vacancies in June, down from 8.23 million in May.
Despite this slight dip, the US economy and job market have shown remarkable resilience in the face of the Federal Reserve's aggressive inflation control measures, which include raising the benchmark interest rate to a 23-year high. These higher borrowing costs have led to a steady decline in job openings since their peak at 12.2 million.
Even so, 8.2 million job openings are still a significant number. Before 2021, monthly job vacancies had never exceeded 8 million. The Federal Reserve sees a reduction in job vacancies as a less painful way to cool the job market compared to layoffs. This helps reduce the pressure on companies to increase wages, which can drive inflation.
The Labor Department will release July's job creation and unemployment figures on Friday. According to a survey by the data firm FactSet, the economy likely added 175,000 jobs in July, which is lower than the 206,000 jobs added in June. The unemployment rate is expected to remain steady at a low of 4.1%.
The Federal Reserve is expected to keep interest rates unchanged at its meeting this week but may start reducing them in September.
