US job openings increase modestly in October

[WASHINGTON] US job openings increased marginally in October, but hiring remained subdued as employers navigated an uncertain economic environment.

Job openings, a measure of labour demand, were up 12,000 to 7.670 million by the last day of October, the Labor Department’s Bureau of Labor Statistics (BLS) said in its Job Openings and Labor Turnover Survey, or Jolts report, on Tuesday (Dec 9). Economists polled by Reuters had forecast 7.150 million unfilled jobs.

Hiring dropped by 218,000 to 5.149 million in October. The report incorporated data for September, whose release was cancelled because of the 43-day federal government shutdown.

The BLS said it had “temporarily suspended use of the monthly alignment methodology for October preliminary estimates,” adding that “use of this methodology will resume with the publication of October final estimates.” There were 7.658 million job openings in September.

Hiring was at 5.367 million in September. The combined reports suggested the labour market remained in what economists and policymakers call a “no-hire, no-fire” state.

Labour market stagnation has been blamed on reduced labour supply amid a reduction in immigration that started during the final year of former President Joe Biden’s term and accelerated under President Donald Trump’s second administration.

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The adoption of artificial intelligence for some job roles is also reducing labour demand, especially for entry-level positions. Financial markets expect the Federal Reserve will cut its benchmark overnight interest rate by another 25 basis points to the 3.50-to-3.75 per cent range on Wednesday out of concern for the labour market. The US central bank has lowered rates twice this year.

Policymakers will not have in hand November’s employment report, whose release was also delayed by the shutdown. The report, now due next Tuesday, will include October’s nonfarm payrolls data.

October’s employment report was cancelled. The unemployment rate for October will not be available, as the shutdown prevented the collection of data for the household survey from which the jobless rate is calculated. REUTERS