As a result of rising interest rates, the number of job opportunities in the United States dropped in March to its lowest level in over two years.
Employers reported 9.6 million open positions in March, the fewest since April 2021 and down from over 10 million in February.
The Job Openings and Labor Turnover Summary published by the Labor Department on Tuesday revealed that layoffs increased to 1.8 million, the most significant number since December 2020.
The number of Americans quitting their employment, a sign that they believe they may work for a better wage or working conditions elsewhere, fell to 3.9 million, the lowest figure since May 2021.
Although still robust, the American labor market is slowing down. To control inflation, which reached a four-decade high last year, the Federal Reserve has increased its benchmark interest rate nine times in little more than a year.
Additionally, rising borrowing costs are harming the economy.
A strong labor market can increase prices overall as well as wages.
Contingent Macro Advisors stated in a research note, “Overall, the JOLTS report shows a historically tight labor market that is finally starting to slacken more quickly, something Fed officials have been seeking for several quarters.”
Despite cooling, the job market is still robust by historical standards. Before 2021, monthly job openings had never surpassed 10 million.
After that year, they did so for 20 consecutive months. The run came to an end in February.
The jobs report for the previous month is released by the Labor Department on Friday.
According to forecasters surveyed by the data firm FactSet, less than 182,000 jobs are expected to be added by businesses in April.
This would be the third consecutive month of declines since payrolls increased by a healthy 472,000 in January.
In April, the unemployment rate is predicted to bounce up to 3.6%, a few points from the 50-year low of 3.4% in January.
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