US labor market shows stable resilience: New opportunities despite hesitant hiring

The U.S. labor market in October shows a solid increase in job openings and a marked decrease in layoffs, continuing its orderly slowdown. This is according to the latest JOLTS report from the Department of Labor, which documents this trend of moderate market development. Despite many employers' reluctance to hire new workers, the low layoff rate ensures that wages remain stable and stimulate consumption. In October, there were 1.11 job openings for every unemployed person, a slight increase from 1.08 in September. This is a decline compared to the peak of 2.03 in 2022, but still below the pre-pandemic level of 1.2. This situation strengthens workers' confidence, reflected in the most significant increase in resignations in a year and a half. This state of the labor market could be crucial in determining whether the Federal Reserve proceeds with its third consecutive interest rate cut this month, especially given the stagnant decline in inflation. According to Oren Klachkin, a financial market expert at Nationwide, the report signals sustained resilience without significant economic concerns, potentially paving the way for another rate cut. The number of job openings rose by 372,000 to 7.744 million at the end of October. Particularly, the professional and business services sector showed an increase of 209,000 open positions, while the hospitality and information technology sectors also had significant increases. A decline of 26,000 open positions in the public sector, however, was noted. Regarding regions, the South of the U.S. again bore the brunt of the job openings. There was a decline in hiring in construction, manufacturing, finance and insurance, as well as in the leisure and hospitality industry.