The US labor market showed signs of slowing down as job openings increased unexpectedly while hiring eased up in November. According to the latest Job Openings and Labor Turnover Survey (JOLTS report), there were 1.13 job openings for every unemployed person, a rise from 1.12 in October.
However, employers remained hesitant to add more workers after a hiring spree during the pandemic recovery. The hires rate dipped to 3.3% from 3.4% in October, and significant declines were seen in professional and business services and manufacturing hiring.
Layoffs also remained low at 1.765 million, with only a slight increase in the accommodation and food services industry. Workers were reluctant to quit their jobs, with the number of quits declining by 218,000, which bodes well for wage price pressures and overall inflation.
Despite the rise in job openings, the US central bank is unlikely to cut interest rates anytime soon. The Fed lowered its benchmark overnight interest rate by 25 basis points to the 4.25%-4.50% range at its Dec. 17-18 policy meeting.
The data also highlighted growing concerns about tariffs and their impact on businesses. Some providers were making preparations to diversify supply, while others expressed uncertainty about purchasing decisions due to tariff threats from the incoming administration.
Overall, the US labor market continues to show signs of slowing down as employers navigate the economic environment with caution until it becomes clear how they need to adjust their headcounts.
Source: https://finance.yahoo.com/news/us-trade-deficit-widens-november-135133575.html