The Labor Department reported on Tuesday that job openings tumbled in October to their lowest in 2½ years, signaling a potential loosening of the historically tight labor market.
Employment openings totaled 8.73 million for the month, a decline of 617,000, or 6.6%. This number was well below the 9.4 million estimate from Dow Jones and the lowest since March 2021.
The decline in vacancies brought the ratio of openings to available workers down to 1.3 to 1, a level that only a few months ago was around 2 to 1. Federal Reserve policymakers closely watch this report, known as the Job Openings and Labor Turnover Survey, for signs of labor slack. The Fed has been boosting interest rates in an effort to slow the labor market and cool inflation, and is contemplating its next policy move.
While job openings fell dramatically, total hires only nudged lower, and layoffs and separations were modestly higher. Quits, which are seen as a measure of worker confidence in the ability to change jobs and find another one easily, also remained little changed.
Declines in job openings were widespread by industry. The biggest sector decline was in education and health services, followed by financial activities, leisure and hospitality, and retail.
Overall, the report reflects a potential shift in the labor market, as job openings decrease and the ratio of available workers increases. This is breaking news, and we will continue to provide updates on the evolving labor market situation.