US September Job Openings Hit Lowest in 3 Years 8 Months... Layoffs Surge Significantly

US Department of Labor Releases Job Openings and Labor Turnover Report
September Job Openings at 7.443 Million 'Below Expectations'
Layoffs Reach 1.8 Million, Highest in 1 Year and 9 Months

The number of job openings in the United States in September fell significantly short of market expectations, marking the lowest level since early 2021. This is seen as a sign that the labor market is cooling, with layoffs also increasing sharply.

According to the September Job Openings and Labor Turnover Survey (JOLTs) released by the U.S. Department of Labor on the 29th (local time), the number of job openings last month was 7.443 million. This is the lowest level in 3 years and 8 months since January 2021, significantly below both the market forecast (7.98 million) and the previous month’s figure (7.861 million).

By sector, job openings decreased in healthcare and social assistance (down 178,000), state and local government excluding education (down 79,000), and federal government (down 28,000). On the other hand, the financial and insurance sector saw an increase in job openings by 85,000.

Hires totaled 5.6 million, and the employment rate was recorded at 3.5%. The employment rate in August was 3.4%.

A notable point in this report is that alongside the decrease in job openings, layoffs have increased significantly.

Separations totaled 5.2 million, down 326,000 compared to a year ago. The separation rate fell from 3.5% to 3.3% over the same period. Among these, layoffs, which refer to involuntary separations, reached 1.8 million, the highest level in 1 year and 9 months since January 2023. The layoff rate rose from 1.0% a year ago to 1.2%. Voluntary separations were 3.1 million, with a voluntary separation rate of 1.9%. A year ago, voluntary separations and the voluntary separation rate were 3.6 million and 2.3%, respectively, indicating a decrease in separations and a decline in the separation rate. This reflects a weakening confidence among workers in their ability to find new jobs.

The number of job openings per unemployed person, a key indicator closely watched by the U.S. Federal Reserve (Fed), remained at 1.1, the pre-COVID-19 pandemic level.

A more accurate picture of the U.S. labor market is expected to be revealed in the October employment report to be released by the U.S. Department of Labor on the 1st of next month. Experts predict that nonfarm payrolls last month increased by only 111,000 due to the impact of hurricanes, a significant slowdown compared to September’s increase of 254,000. The unemployment rate is expected to remain unchanged at 4.1% from the previous month.