Job openings unexpectedly fall in October to lowest level in 2 years
FreedomWorks senior economist Steve Moore provides insight on the state of the economy on 'Making Money.'
U.S. job openings tumbled in October to the lowest level in more than two years, the latest evidence that the Federal Reserve's interest-rate hike campaign is continuing to cool the labor market.
The Labor Department said Tuesday there were 8.7 million job openings in October, a decrease from the downwardly revised 9.3 million openings reported the previous month. Economists surveyed by Refinitiv expected a reading of 9.3 million.
It marked the lowest level for job openings since March 2021.
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Elementary school educators gather to talk to prospective hires during a hiring event for Prince George's County school district hosted at Dr. Henry A. Wise Jr. High School in Upper Marlboro, Maryland, on Aug. 2, 2023. (Amanda Andrade-Rhoades/For The Washington Post via Getty Images / Getty Images)
The Federal Reserve closely watches these figures as it tries to gauge labor market tightness and wrestle inflation under control.
The central bank has responded to the inflation crisis and the extremely tight labor market by raising interest rates at the fastest pace in decades. Officials have so far approved 11 rate hikes, lifting the federal benchmark funds rate to the highest level since 2001. Policymakers have signaled that additional rate hikes are on the table if economic data points to a resurgence in price pressures.
IS THE FEDERAL RESERVE DONE RAISING INTEREST RATES?
However, the softer-than-expected jobs data could give policymakers more space to end their tightening campaign.
«This is the type of JOLTS report that Fed officials want to see,» said zOren Klachkin,
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