The Bureau of Labor Statistics reported that job openings increased in October, reaching a total of 7.74 million, which was higher than expected. However, hiring decreased during the same month, with just 5.31 million hires recorded, leading to a decline in the hiring rate to 3.3%. The rate of layoffs also decreased to 1.63 million, while voluntary job quitters increased to 3.33 million. These trends occurred amidst disruptions in the labor market due to storms and strikes involving dock workers and Boeing.
The data from the Job Openings and Labor Turnover Survey indicated that the ratio of available positions to unemployed workers increased to 1.1, although it was still lower than previous peaks. The report also revealed that nonfarm payroll growth in October was just 12,000, the lowest in nearly four years, suggesting potential weakness in the labor market.
The Federal Reserve closely monitors the JOLTS report for signs of tightness or slack in the labor market. In response to these trends, markets expect the Fed to lower its benchmark borrowing rate in an effort to prevent further weaknesses in the labor market. This data underscores the ongoing challenges and fluctuations in the job market, despite the increase in job openings.
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