US Job Openings in October Drop to Lowest Level Since Early 2021

According to Yahoo News, the US labor market continues to cool as job openings in October fell to their lowest level since early 2021. The latest Job Openings and Labor Turnover survey published by the Bureau of Labor Statistics showed that the number of job openings dipped from a downwardly revised 9.4 million in September to 8.7 million by the end of October. This development is likely welcomed by the Federal Reserve, which has been attempting to cool the labor market without sparking a damaging recession. The decline in job openings brings the number of job openings per unemployed American to just 1.3, the lowest since August 2021, according to Julia Pollak, chief economist at ZipRecruiter. The labor market has slackened substantially in recent months, as indicated by this measure of labor market tightness often cited by Fed Chair Jerome Powell. However, the low and stable layoffs rate gives reason for workers to feel confident, with many demographics in the workforce enjoying more job security than pre-pandemic times. Markets expect the Fed to begin cutting interest rates as soon as the first quarter of 2024. On Tuesday, CME's FedWatch Tool showed traders priced in a 55% probability for a quarter-point cut by March. Strategists at ING forecast that the central bank will cut rates six times next year, while Barclays expects four reductions in 2024.