Data from the Job Openings and Labor Turnover Summary report released Tuesday by the Bureau of Labor Statistics showed that job openings in the U.S. dropped by around 1.1 million to just over 10 million by the last day of August.
Last month private sector employment still increased by 208,000 jobs – more than 185,000 in August – according to research released by ADP Research Institute, a non-governmental organization, the following day.
At the same time that the BLS noted a decrease in job openings, it said hires were “little changed” at 6.3 million, along with 6 million “separations” that include workers quitting, being laid off and discharged. According to Reuters, there were 1.7 job openings for every unemployed person in August, down slightly from July.
“Even as higher interest rates and inflation, and weaker business and consumer confidence are beginning to tamp down labor market activity, the labor market still remains healthy,” said Sophia Koropeckyj, a senior economist at Moody’s Analytics in West Chester, Penn., cited by the outlet. She said that the Federal Reserve Bank is not expected to lower interest rates any time soon.
ADP Research Institute found that annual pay was up 7.8% year-over-year as of last month, which may help some people in the country weather the impact of high inflation and high interest rates.
“There are signs that people are returning to the labor market. We’re in an interim period where we’re going to continue to see steady job gains. Employer demand remains robust and the supply of workers is improving – for now,” said Nela Richardson, chief economist at ADP.