The size of job openings at U.S. companies rebounded in August, suggesting that the overheated labor market may not be easily resolved.
According to the Job Recruitment and Turnover Report (JOLTS) released by the Ministry of Labor on the 3rd, the number of job openings in private companies in August was 9.61 million, an increase of 690,000 (7.7%) from the previous month. This figure significantly exceeds the market forecast of 8.8 million compiled by the Wall Street Journal (WSJ).
The number of job openings for private companies has continued to decline this year, and in July reached the lowest level since March 2021.
The rebound in the number of job openings suggests that excess demand in the U.S. labor market may not be easily resolved.
The Federal Reserve System (Fed) believes that overheating the labor market could lead to persistent inflation and is paying close attention to employment-related indicators.
In a speech at the Jackson Hole meeting last August, Federal Reserve Chairman Jerome Powell said, “If evidence emerges that the easing of labor market overheating is not sustainable, this will also require a response from monetary policy.”
The market is expected to pay attention to whether labor market enthusiasm will continue in key employment-related indicators such as the September employment report to be released on the 6th.