US job openings increase sharply in September

What happened

US job openings rose by 333,000 to 7.523 million by the end of September, the Labor Department's JOLTS report said. Layoffs fell by 127,000 to 1.641 million, while hiring increased by 131,000 to 5.402 million.

Confirmed

Global impact / market context

More open jobs and fewer layoffs suggest companies still need workers and are not cutting staff, which can support sales and profits. Stronger demand may keep the Federal Reserve cautious about cutting interest rates, affecting borrowing costs for companies and investors.

Analyst inference

Economists describe the labor market as "low-hire, low-fire," meaning few job gains but few job cuts. They say strong profits and resilient domestic demand keep layoffs near historic lows, though the US-Israeli war with Iran makes employers hesitant to boost hiring.

Analyst inference

What to watch

1. Hiring rose by 131,000 to 5.402 million in September, with the hires rate up to 3.4% from 3.3% in August, showing whether employers turn open jobs into actual workers. Confirmed
2. Watch whether the low response rate in the JOLTS survey, which has fallen considerably since before the COVID-19 pandemic, leads to later revisions of the September job openings figure. Proposed
3. Watch whether the US-Israeli war with Iran keeps employers hesitant to boost hiring, which could limit job growth even as open positions and profits remain strong. Analyst inference

Evidence

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