Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

US job vacancies fall to lowest for two years

by December 6, 2023
December 6, 2023
US job vacancies fall to lowest for two years

Job vacancies in the American economy fell to their lowest level in more than two years, helping cool the labour market and raising expectations of interest rate cuts in the world’s largest economy.

Official figures from the Labour Department showed there was a drop in job openings from 9.35 million to 8.73 million in October, below economists’ forecasts and the lowest reading since March 2021. It means there are now 1.34 jobs for every unemployed person, a sign that the red-hot labour market is feeling the effect of higher interest rates.

As in the UK, the US vacancy rate surged last year when companies’ demand for workers outstripped the number of people looking for jobs. The vacancy rate has since been falling steadily under the impact of higher borrowing costs, which deter companies from investment and hiring.

Traders reacted by buying up US government debt, forcing down the yield on two and ten-year government bonds as they bet on monetary easing from the US Federal Reserve next year.

Nancy Vanden Houten, lead US economist at Oxford Economics, said the drop in job openings would allow the Fed to keep its benchmark interest rate on hold again this month but rate cuts were not on the horizon.

“The labour market is coming into a better balance between the supply and demand of labour. Evidence of cooler labour market conditions will keep further rate hikes off the table, but we don’t expect rate cuts until the third quarter of next year,” she said. “The Fed needs to be convinced that inflation is on a path back to 2 per cent and we expect the progress toward that goal to occur gradually over the next several months.”

Mohamed El-Erian, chief economist adviser to Allianz, said the US central bank was at risk of losing control over its messaging on inflation after financial markets have begun pricing in large rate cuts for next year.

“I do believe the Fed is done raising rates but I don’t think that validates what is in the markets about rate cuts next year. [The Fed] still have a significant communication problem and they still have a credibility problem,” El-Erian told Bloomberg radio.

Separate figures that show the rate at which workers are quitting their jobs remained unchanged in October at 2.3 per cent. This “quits rate” is a closely watched indicator of wage pressures, because higher resignations suggest employees have greater bargaining power to secure better pay deals.

Read more:
US job vacancies fall to lowest for two years

0
FacebookTwitterGoogle +Pinterest
previous post
How to Leverage Video Production for Business Marketing Success
next post
Portfolio Accounting System: What Are the Features to Look For?

You may also like

10 Finance Apps Every College Student Should Use...

October 24, 2024

A Comprehensive Guide to Establishing an LLC in...

November 17, 2023

The Ultimate Guide to Choosing the Best Bamboo...

March 7, 2023

“Wake up call” for government as self-employed sector...

February 10, 2023

Britishvolt factory site may go on sale again

February 23, 2024

Lidl increases pay to match Aldi in battle...

May 12, 2024

Businesses using AI to file R&D tax claims...

January 20, 2025

Farmers protest inheritance tax changes as ministers unveil...

November 18, 2024

Loose Women’s Kaye Adams prevails in ten-year battle...

November 7, 2024

eSIM in Turkey: a game-changer for group travel

May 3, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • National Wealth Fund commits £200m to UK battery storage push

      August 28, 2025
    • XRP price prediction hits new highs, GMO Miner helps you earn $6,800 a day

      August 28, 2025
    • West End retailers lose £310m from VAT-free shopping ban in first half of year

      August 28, 2025
    • Dollar slips as Trump moves to sack Fed governor Lisa Cook in unprecedented clash over central bank independence

      August 28, 2025
    • CDC Director Susan Monarez refuses to be fired as other officials call it quits

      August 28, 2025
    • Bill Gates met with Trump to talk ‘importance of US global health programs and health research’: spox

      August 28, 2025

    Categories

    • Business (8,901)
    • Investing (2,246)
    • Politics (16,503)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved