U.S. Job Openings Plummet to Lowest Level in 3.5 Years

WASHINGTON (Reuters) – U.S. job openings fell to the lowest level in over 3.5 years in September, with previous month data revised down, indicating a significant easing in labor market conditions.

Job openings, a measure of labor demand, decreased by 418,000 to 7.443 million by the end of September, the lowest since January 2021, according to the Labor Department's Bureau of Labor Statistics' Job Openings and Labor Turnover Survey (JOLTS report).

Data for August was adjusted to show 7.861 million unfilled positions, down from the previously reported 8.040 million. Economists polled by Reuters estimated 8.00 million job openings. Hiring rose by 123,000 to 5.558 million, while layoffs increased by 165,000 to 1.833 million.

Temporary disruptions, like hurricanes and strikes, likely obscured the labor market view, with job gains expected to significantly slow in October. Nonfarm payrolls are predicted to have increased by 115,000 jobs, after a rise of 254,000 in September, per a Reuters survey.

This would mark the smallest increase in six months, with the unemployment rate expected to remain unchanged at 4.1%. Federal Reserve officials may disregard October's employment report during their next meeting.

The U.S. central bank anticipates cutting interest rates by 25 basis points, following a larger-than-usual half-percentage point cut in September, marking the first reduction since 2020, lowering the policy rate to the 4.75%-5.00% range. The Fed had previously raised rates by 525 basis points in 2022 and 2023 to combat inflation.