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Job openings slide in June as inflation rages, interest rates surge

American employers posted fewer job openings in June as the economic system contends with raging inflation and rising interest rates.

Job openings fell to a still-high 10.7 million in June from 11.3 million in May, the Labor Department mentioned Tuesday. Job openings, which by no means exceeded 8 million in a month earlier than final year, had topped 11 million each month from December by way of May earlier than dipping in June.

In its month-to-month Job Openings and Labor Turnover Survey, the Labor Department mentioned that the variety of Americans quitting their jobs fell barely however remained excessive at 4.2 million in June whereas layoffs fell to 1.3 million from 1.4 million in May.

The job market has been resilient thus far this year, and firms have complained that it’s laborious to fill open positions: Employers have added a mean of 457,000 a jobs a month in 2022; and unemployment is close to a 50-year low. That is one purpose many economists imagine the economic system is just not but in a recession though gross home product, the broadest measure of financial output, has contracted for 2 quarters in a row — one rule of thumb for the onset of a downturn.

“If the economy is rolling over, the labor market had apparently not gotten the memo yet as of the end of June,″ said Stephen Stanley, chief economist at Amherst Pierpont Securities. “A case could be made for slight moderation from an egregiously overheated state, but that is about as far as I would go in assessing labor market conditions.”

The Labor Department’s jobs report for July, out Friday, is anticipated to point out that employers tacked on one other 250,000 jobs final month.
REUTERS

The Labor Department’s jobs report for July, out Friday, is anticipated to point out that employers tacked on one other 250,000 jobs final month, which might be a wholesome quantity in regular instances however can be the bottom since December 2020, when the worldwide economic system was being ravaged by the pandemic. Economists additionally anticipate that unemployment stayed at 3.6% for the fifth straight month, in line with a survey by the info agency FactSet.

The economic system is beneath strain as the Federal Reserves raises interest rates to fight inflation that’s operating on the quickest tempo in 4 a long time.

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