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USA Labor Market Loses Steam as Job Openings, Resignations Decline


The USA labor market is showing signs of slowing down, as job openings and resignations declined in July. This could be a sign that the economy is nearing full employment, and that wage growth could start to moderate.

The latest Job Openings and Labor Turnover Survey (JOLTS) report from the Bureau of Labor Statistics showed that there were 8.8 million job openings in July, down from 9.1 million in June. This is the third consecutive month that job openings have declined.

The quits rate, which measures the number of people who voluntarily leave their jobs, also declined in July. The quits rate fell to 2.3% in July, from 2.4% in June. This is the lowest quits rate since January 2021.

The decline in job openings and quits could be a sign that the labor market is nearing full employment. When the labor market is near full employment, there are fewer people available to fill open jobs, which leads to a decline in job openings. The decline in quits could also be a sign that workers are becoming less confident in their ability to find a new job, which could lead to a moderation in wage growth.

The Federal Reserve is closely watching the labor market as it makes decisions about monetary policy. The Fed is currently raising interest rates in an effort to combat inflation. However, the Fed will need to be careful not to raise rates too quickly, as this could slow down the economy and lead to job losses.

The next JOLTS report will be released on September 9th. This report will provide more information about the state of the labor market and the impact of the Federal Reserve’s interest rate hikes.

In addition to the JOLTS report, there are other factors that could be contributing to the slowdown in the labor market. These factors include:

The slowdown in the labor market could have a number of implications for the economy. It could lead to a moderation in wage growth, which could help to ease inflation. It could also lead to a decline in economic growth, as businesses have fewer workers to produce goods and services.

The full impact of the slowdown in the labor market is still unknown. However, it is a trend that the Federal Reserve and businesses will need to monitor closely.

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