U.S. job vacancies fell to their lowest level in almost two years in February, signaling that job markets were finally relaxing. This was good news for the Federal Reserve as it weighed pausing its interest rate hikes.
The labor market remained tight, with 1.7 job postings for every jobless individual in February, falling from 1.9 in January. Federal authorities regularly monitor this ratio. Per Reuters, Friday's March employment data will enlighten the U.S. job market.
Before the current financial market crisis, which tightened credit and raised worries of massive job losses, job opportunities fell.
Christopher Rupkey, the chief economist at FWDBONDS in New York, stated, The U.S. labor market was "starting to lose steam" even before the financial crisis struck the economy in March, and this establishes a perilous scenario where tighter credit restrictions might induce genuine layoffs in the months ahead as firms fight to keep expenses "under control."
From 6.3 million in January, hiring decreased to 6.2 million. The hiring rate also dropped to 4.0% from 4.1 percent.
Despite fewer job vacancies, 146,000 individuals quit, bringing the number to four million. Most resignations were from small enterprises.
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U.S. Job Market Facing Tough Problem
The U.S. Chamber of Commerce reported that in-person employment with lesser incomes had a more challenging situation in keeping people throughout the epidemic reshuffling.
The Hotel and Food Services business has had the highest resignation rate since July 2021, constantly over 5%. Retail sector leave rates hovered at 4% in winter 2022. Both sectors had higher leave rates than the 2.5% national average for January 2023.
Hiring rates have consistently outperformed quit rates. In January 2023, the leisure and hospitality industry lost 1 million jobs but recruited 1.1 million.
Federal data show that over 50 million people left their occupations in 2022, showcasing the tenacity of a competitive labor market with plenty of job opportunities, per CNBC.
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