Interest rates may remain elevated as U.S. job openings fell to the lowest levels in two years but remained at levels congruent with tight labor market conditions.
According to a report from the Department of Labor, workers are growing less confident in the labor market.
Job openings dropped 34,000 to 9.582 million by the end of June.
“While today’s report discusses data from June, this continued strength in the labor market is likely to keep Fed officials hawkish,” said chief economist at Raymon James in St. Petersburg, Florida, Eugenio Aleman.
Economists do not expect more hikes in the ongoing tightening cycle.
Hiring levels dropped to the lowest point since February 2021, to 5.905 million.
Layoffs and discharges fell to 1.527 million.
Reporting from Reuters:
While the labor market remains defiant, higher borrowing costs are hurting manufacturing, though factory activity appears to have stabilized at weaker levels in July. ... Of the six biggest manufacturing industries, only petroleum and coal products reported growth. Views from manufacturers were mixed. Transportation equipment makers said "demand is softening." Manufacturers of fabricated metal products reported "stable demand for the next four to six months, but longer-term uncertainty." Machinery makers said "suppliers are starting to reach out looking for new business." Miscellaneous manufacturers reported that "sales remain higher than forecast," but also noted that "supplier capacity issues remain."
