Job vacancies fell more than forecast in April, pointing to a possible slowdown in the labor market that could give the Federal Reserve more impetus to start cutting interest rates.
The Labor Department’s job vacancies and labor turnover survey showed the number of job vacancies fell to 8.06 million during the month, down nearly 300,000 from March and down nearly 19% from a year ago.
Additionally, the total was the lowest since February 2021. The ratio of job vacancies to available workers fell slightly from 1.2 to 1, after being around 2 to 1 when job vacancies peaked in March 2022 reached over 12 million. The ratio has returned to approximately the same level it was before the Covid pandemic.
Fed officials are watching the JOLTS report closely for signs of a lull in the labor market as they look for direction on monetary policy. Policymakers have kept interest rates at their highest in 23 years as they wait for more compelling evidence that inflation is heading back toward the central bank’s 2 percent target. Market prices point to a first rate cut in September.
While job openings fell, hiring increased slightly, as did the number of separations and terminations, a sign that workers are confident about moving to other positions.
By industry, information technology saw the largest percentage decline in job openings, down 1.3% over the month. Two industries that had made large employment gains, healthcare and leisure and hospitality, saw significant declines in job openings, down 0.8% and 0.6%, respectively.
The Bureau of Labor Statistics report kicks off a big week of labor-related data.
On Wednesday, ADP will release its May estimate for private payrolls, with the Dow Jones estimate for May at 175,000, up from 192,000 in April. Weekly jobless claims data will be released on Thursday. Then on Friday, the BLS will release its key May report on nonfarm payrolls, which is expected to show growth of 190,000, up from 175,000 the previous month.
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2024-06-04 16:01:51
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