US job openings drop in March; hires increase sharply
Reuters
Synopsis
American job openings saw a slight dip in March. However, a significant increase in hiring indicates the job market is recovering. This stability supports expectations that the Federal Reserve will maintain current interest rates. Rising inflation remains a concern for the central bank. Geopolitical events are also creating economic uncertainties.
AgenciesUS job openings drop in March; hires increase sharply
Washington: U.S. job openings slipped in March, but a surge in hiring suggested the labor market was regaining its footing after struggling last year. Job openings, a measure of labor demand, were down 56,000 to 6.866 million by the last day of March, the Labor Department’s Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey, or JOLTS report. Economists polled by Reuters had forecast 6.835 million unfilled jobs.
The job openings rate eased to 4.1% from 4.2% in February. Hiring jumped by 655,000 to 5.554 million. The hires rate increased to 3.5% from 3.1% in February. Layoffs and discharges, however, increased by 153,000 to 1.867 million, with the rate for that category climbing to 1.2% from 1.1% in the prior month.
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Economists see growing downside risks to the labor market from the U.S.-Israeli war with Iran, which has disrupted shipping through the Strait of Hormuz, boosting the prices of oil, fertilizer, aluminum and other commodities.
Labor market stability for now is supporting financial market expectations that the Federal Reserve will keep interest rates unchanged this year. The U.S. central bank last week left its benchmark overnight interest rate in the 3.50%-3.75% range, citing rising inflation concerns.
