Job openings in the U.S. fell to their lowest level since April 2021, the latest Job Openings and Labor Turnover Survey, or JOLTS report revealed on Tuesday. 9.6 million job openings existed at the end of March, down from 9.9 million in February. In April 2021, there were 9.3 million job openings.
On a positive note, the fall in job openings hints that the Federal Reserve’s efforts to cool the labor market are paying off, particularly as the central bank looks to create better balance in the fight against inflation.
“The decline in job openings since the start of the year indicates the cumulative impact of the Fed’s aggressive rate hike campaign is starting to bite,” economists at Oxford Economics observed. “However, the level of openings is still elevated, and we expect the Fed to opt for another 25bps increase this week as it looks to ensure that the rebalancing of supply and demand in the labor market continues.”
The JOLTS report comes in time for the Federal Reserve’s latest interest rate policy decision, which is set to be determined at its two-day policy meeting scheduled to commence on Wednesday.