US job openings jump in September

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The unexpected surge in job vacancies is fueling expectations that the US Federal Reserve will continue to raise rates to further reduce inflation.

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In September, the number of vacancies in the US increased, suggesting that the demand for labor remains strong, which may moderate financial markets’ expectations that the US Federal Reserve will reverse its aggressive interest rate hike in December.

With roughly 1.9 vacancies for every unemployed person at the end of September, wage growth could remain strong. But the Fed’s fight against inflation received a significant boost from an Institute for Supply Management (ISM) poll on Tuesday that showed commodity prices fell for the first time in 28 months in October.

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The latest employment data, which was released ahead of a broader employment report from the US Bureau of Labor Statistics on Friday, disappoints investors who are looking for signs of lower inflation and that the Fed may consider containing interest rate hikes.

“It’s really fueling the expectation that the Fed will have to do more trips,” said Jason Dracho, head of asset allocation for the Americas at UBS Global Wealth Management. “The labor market is still too tight for the Fed.”

The US central bank is expected to raise rates by another 0.75% on Wednesday as it fights to lower labor demand and the broader economy to bring inflation down to its 2% target.

Wall Street is concerned that the central bank is being too aggressive in slowing down the economy, risking a recession.

“The good news of more jobs for everyone will be bad news for everyone if Fed officials are convinced they need to raise interest rates even higher and faster than before,” said Christopher Rupki, chief economist at FWDBONDS, a financial markets research firm in USA. New York. “It’s a headache when you have to wonder if 10 million jobs can prevent a recession.”

The number of vacancies, a measure of labor demand, increased by 437,000, and by the last day of September, the total number of vacancies reached 10.7 million, according to the US Department of Labor Monthly Jobs and Turnover Survey, or JOLTS report. The data for August was revised upwards and showed 10.3 million vacancies instead of 10.1 million, as previously reported.

Economists polled by Reuters had forecast 10 million job openings. An additional 215,000 vacancies were opened in the hospitality and catering industry. The number of vacancies in the health and social care sectors increased by 115,000, while an additional 111,000 vacancies were registered in the transport, warehousing and utilities sectors.

But the number of vacancies fell by 104,000 in wholesale trade. There were 83,000 fewer vacancies in finance and insurance. The vacancy rate increased to 6.5% from 6.3% in August. Hiring fell to 6.1 million from 6.3 million in August.

Employment fell by 57,000 in durable goods manufacturing and by 40,000 in education at the state and local levels.

Workers are still quitting

Some 4.1 million workers voluntarily quit their jobs, up from 4.2 million in August. The layoff rate, regarded by politicians and economists as an indicator of labor market confidence, remained unchanged at 2.7 percent.

The number of layoffs fell from 1.5 million to 1.3 million. Financial markets are betting that the Fed will move on to raise rates by half a point at the December policy meeting.

The Fed raised its overnight benchmark interest rate from near zero in March to its current range of 3 percent to 3.25 percent, the fastest pace of policy tightening in a generation or more.

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