U.S. employers posted fewer job openings in November than at any time since March 2021, but that doesn’t mean the job market is weakening all that much.
American companies still posted 8.8 million job openings in November, down slightly from October’s 8.9 million, according to statistics provided by the Labor Department, whose report also showed fewer people quitting their jobs. That number dropped to its lowest level since February 2021, and now stands basically where it was before the pandemic broke out in March 2020.
In November, job openings dropped by 128,000 in transportation, warehousing and utilities and by 78,000 at hotels and restaurants, the Associated Press reported. The federal government reduced job openings by 58,000. By contrast, openings in construction rose by 43,000 and in retail by 42,000.
In the face of rising interest rates, job openings have gradually but steadily declined since peaking at a record 12 million in March 2022. But they remain at historically high levels: Before 2021, monthly job openings had never topped 8 million, the AP reported.
In a continuing battle with a stubborn inflation rate, Federal Reserve officials raised their benchmark interest rate 11 times since March 2022 to a 22-year high of about 5.4%.
The unemployment rate currently sits at 3.7%, not far above a half-century low. Through November of last year, American employers added some 232,000 jobs a month. Economists are expecting the December jobs report, set to be released Friday, to show the economy added 155,000 jobs last month.
“Overall, the labor market remains strong, but demand is cooling, coming into better balance with supply,’’ Rubeela Farooqi, chief U.S. economist at High Frequency Economics, told the AP. “And wage and inflation pressures are decelerating. These data will be welcome news for policymakers and support the Fed’s view that the next move in rates will be lower.’’
