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11.2 million job openings amid a hiring slowdown

Aug 31, 2022

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Job openings remain at a high level as more than 11.2 million job positions remain vacant amid a slowdown in hiring. There were nearly 1 million more job openings than expected in July, an inflationary sign that the U.S. labor market is still extremely tight, the Bureau of Labor Statistics reported Tuesday. Jobs available outnumber available workers at nearly a two to one ratio.

In August, companies added just 132,000 jobs. Economists had predicted hiring would be more than double that amount. In July, there were 270,000 new hires. It could be a sign companies are pulling back on hiring amid growing fears of an economic slowdown. The pairing of more job openings and slower hiring signals a more conservative market.

“Our data suggests a shift toward a more conservative pace of hiring, possibly as companies try to decipher the economy’s conflicting signals,” said ADP chief economist Nela Richardson. “We could be at an inflection point, from super-charged job gains to something more normal.”

The report now includes data on wages, which showed that annual pay climbed 7.6% in August – a concerning development as consumers continue to confront the hottest inflation in close to four decades. The Fed has responded to the inflation crisis and the extremely tight labor market by raising interest rates at the fastest pace in decades. Officials approved two consecutive 75 basis point rate hikes in June and July and have signaled that another rate hike of that magnitude is on the table in September.

“While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation,” Federal Reserve Chair Jerome Powell said.

Job openings remain at a high level…
As more than 11.2 million job positions remain vacant.
Jobs available outnumber available workers…
At nearly a two to one ratio.
In august…Companies added just 132 thousand jobs.
Economists had predicted they’d hire more than double that amount.
In july…There were 270 thousand new hires.
It could be a sign companies are pulling back on hiring amid growing fears of an economic slowdown.
The pairing of more job openings and slower hiring signals a more conservative market.