Job openings rose solidly in October, while layoffs dropped by the largest amount in 1.5 years, indicating the labor market continued to slow in an orderly fashion. The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) showed 1.11 job openings per unemployed person, up from 1.08 in September, but below the pre-pandemic level of 1.2. Despite this, employers remain hesitant to hire more workers, and the historically low layoffs continue to anchor the economy, supporting higher wages and consumer spending.
Job openings increased by 372,000 to 7.744 million in October, with professional and business services, accommodation and food services, and information sectors seeing the largest gains. However, hiring decreased by 269,000 to 5.313 million, driven by declines in construction, manufacturing, and leisure and hospitality sectors. The South recorded the most job openings, likely due to Hurricane Helene’s impact.
Layoffs fell by 169,000 to 1.633 million, the largest drop since April 2023, with fewer job cuts in construction, manufacturing, and leisure. Quits surged by 228,000, indicating increased worker confidence. This higher quits rate, alongside slowing wage growth, suggests resilience in the labor market.
Despite hurricane disruptions, job growth is expected to accelerate in November. Economists anticipate a 200,000 increase in payrolls, with the unemployment rate slightly rising to 4.2%. The labor market’s state will influence the Federal Reserve’s decision on further rate cuts.
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