The number of U.S. job openings fell last month to the lowest level in roughly three-and-a-half years, a new report from the U.S. Labor Department showed.
The Labor Department on Tuesday reported that job openings dropped to 7.4 million in September, down from 7.9 million the previous month—a steeper decline than economists had anticipated.
Experts had expected the number of vacancies to hold steady, but key sectors, including healthcare and government agencies at the federal, state and local levels, posted significant losses.
“Over the month, hires changed little at 5.6 million,” the report said.
Following the report, Carl Weinberg and Rubeela Farooqi of High Frequency Economics wrote in a commentary that “workers (are) not as confident as they have been about being able to find a job if they quit without another to step into.”
“There is no signal here of any sudden collapse of the labor market here or any imminent recession. The labor market is softer, sure, but it is not imploding,” Weinberg and Farooqi added.
Layoffs Increase
The report also showed that layoffs increased last month, while the number of Americans voluntarily leaving their jobs dropped to below 3.1 million—the lowest level recorded since August 2020.
A steel worker is seen on August 27, 2024, in Pennsylvania. On Tuesday, a report from the Labor Department showed job openings throughout the U.S. falling to the lowest level in 3.5 years.
AP Photo/Matt Slocum, File/AP Photo/Matt Slocum, File
While job openings have dropped significantly from their 2022 peak of 12.2 million, they are still above pre-pandemic levels. The sharp rebound of the economy following the COVID-19 recession left businesses struggling to hire enough workers to meet surging demand.
Current Economy
An overheated economy fueled a surge in inflation, prompting the Federal Reserve to hike its benchmark interest rate 11 times between 2022 and 2023. Since peaking at 9.1 percent in June 2022, inflation has fallen sharply to 2.4 percent.
Despite aggressive interest rate hikes by the Federal Reserve, the economy has defied expectations and avoided a predicted recession. However, job growth has slowed compared to the hiring boom seen between 2021 and 2023. From January through September 2024, employers added an average of 200,000 jobs per month—a solid pace, though down from the record-setting 604,000 monthly average in 2021, 377,000 in 2022, and 251,000 last year.
Employers added a stronger-than-expected 254,000 jobs in September, but job growth is projected to slow in October. The Labor Department’s upcoming report on Friday is expected to show 120,000 new jobs, with Hurricanes Helene and Milton, along with a strike at Boeing, weighing on the total. Forecasters surveyed by data firm FactSet anticipate the unemployment rate will hold steady at 4.1 percent.
This article includes reporting from The Associated Press.