US employment data August: Job openings fall, layoffs decline as labour market holds steady

Job openings, a measure of labour demand, fell by 256,000 to 7.079 million on the last day of August, the US Labor Department’s Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey (JOLTS) report on Tuesday.

US job openings declined in August, but layoffs remained near historically low levels, suggesting that the labour market continues to show signs of stability despite subdued hiring and economic uncertainty.

Job openings, a measure of labour demand, fell by 256,000 to 7.079 million on the last day of August, the US Labor Department’s Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey (JOLTS) report on Tuesday.

The July figure was revised higher to 7.335 million, from the previously reported 7.271 million. Economists polled by Reuters had expected 7.225 million job openings in August.

Job openings decline

The job openings rate edged down to 4.3% in August from 4.4% in July, indicating some cooling in demand for workers.

The JOLTS data has faced concerns over a low employer response rate, which has fallen significantly compared with the period before the COVID-19 pandemic. Some economists have therefore cautioned against reading too much into monthly movements in the survey.

Still, the latest figures suggest the labour market may be regaining stability after a difficult summer.

Layoffs remain historically low

One of the key signals in the report was the continued weakness in layoffs. Layoffs and discharges fell by 61,000 to 1.641 million in August, while the layoffs rate declined to 1.0% from 1.1% in July.

Employers have remained reluctant to cut large numbers of workers, helping underpin overall labour-market stability even as businesses have been cautious about adding new employees.

Hiring increased by 46,000 to 5.192 million, while the hiring rate rose to 3.3% from 3.2%.

August payrolls showed stronger gains

The JOLTS report comes ahead of the September employment report, due on Friday.

US nonfarm payrolls increased by 162,000 in August, the strongest monthly gain in five months. Economists surveyed by Reuters expect payrolls to have increased by 90,000 in September, while the unemployment rate is forecast to remain at 4.1%.

The September jobs report will provide a broader assessment of whether the recent stabilisation in the labour market is continuing.

Fed focus shifts to inflation

A relatively stable labour market could give the Federal Reserve greater scope to focus on inflation and other price pressures.

According to the figures provided, the US central bank raised its overnight benchmark interest rate by 25 basis points this month to 3.75%-4.00%, its first rate increase in three years, and signalled the possibility of further increases in borrowing costs.

(With Reuters inputs)

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