US Job Openings Hit More Than 2-1/2-Year Low As The Labour Market Cools

• Job openings in the U.S. fell to a 2.5-year low in October, signalling that higher interest rates were impacting demand for workers and fuelling expectations that the Federal Reserve's tightening cycle might be ending.
• The Job Openings and Labour Turnover Survey (JOLTS) revealed a ratio of 1.34 job vacancies for every unemployed person in October, the lowest since August 2021. However, fewer resignations could help ease wage inflation over time.
• Of note, financial markets anticipate a rate cut in response to larger-than-expected declines in unfilled jobs, coupled with recent data showing a subsiding inflation trend. Some analysts project a rate cut as early as the second quarter of 2024.
• Job openings declined across sectors, with significant drops in healthcare and social assistance, finance and insurance, and real estate. However, the information sector saw an increase in job openings.
• Hiring slipped, especially in accommodation and food services, a sector that had driven job growth. Resignations also decreased, suggesting slower wage growth and a potential easing of price pressures in the economy.
• Despite the gradual easing of the labour market, layoffs remain relatively low. The Institute for Supply Management (ISM) reported growth in services employment, with some industries expressing positive expectations while others cited challenges, such as increasing prices in public administration.

(Source: Reuters)