Businesses posted far fewer open jobs in July and the variety of Americans quitting their jobs fell sharply for the second straight month, clear indicators that the labor market is cooling in a manner that might scale back inflation.
The variety of job vacancies dropped to eight.8 million final month, the Labor Department mentioned Tuesday, the fewest since March 2021 and down from 9.2 million in June. Yet the drop gave the impression to be even steeper as a result of June’s determine was initially reported as 9.6 million. That determine was revised decrease Tuesday.
July’s determine was nonetheless wholesome traditionally — earlier than the pandemic the variety of openings had by no means topped 8 million. And there are nonetheless roughly 1.5 obtainable jobs for every unemployed employee, which can also be elevated however down from a peak final 12 months of 1.9.
Fewer Americans additionally give up, with 3.5 million folks leaving their jobs final month, down from 3.8 million in June, the bottom since February 2021.
US client confidence wanes
Americans are feeling much less assured financially as summer season involves an in depth and excessive costs and rates of interest weigh on their willingness to spend.
The Conference Board, a enterprise analysis group, mentioned its client confidence index tumbled to 106.1 in August from a revised 114 in July. Analysts had been anticipating a studying of 116.
Consumers’ view of present circumstances fell to 144.8 from 153, and the index for future expectations slid to 80.2 from 88 in July. Readings beneath 80 for future expectations traditionally indicators a recession inside a 12 months.
“Write-in responses showed that consumers were once again preoccupied with rising prices in general, and for groceries and gasoline in particular,” mentioned Dana Peterson, chief economist at The Conference Board. She mentioned the retreat was evident throughout all age teams.
Source: www.bostonherald.com”