Michael Lee, founder of Michael Lee Strategy, shares his outlook for the market ahead of Varney & Co's September CPI inflation report.
number of Job information The U.S. economy unexpectedly fell in September to its lowest level since January 2021, suggesting continued easing in the labor market.
The number of job openings fell by 418,000 to 7,443,000 by the end of September, according to the Department of Labor's Bureau of Labor Statistics, which released the Job Openings and Turnover Survey on Tuesday. It was the lowest level in six and a half years. Jolts Report.
Economists polled by Reuters had predicted 8 million jobs. The number of employees increased by 123,000 to 5,558,000, and the number of layoffs increased by 165,000 to 1,833,000.
Julia Pollack, ZipRecruiter's chief economist, told FOX Business: “September's JOLTS report shows that the labor market continues to cool, with a notable decline in job openings and retirements, and a significant increase in layoffs. “I am pointing out that this is the case,” he said.
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The number of job openings unexpectedly fell in September, hitting the lowest level since 2021. (Yuki Iwamura/via Bloomberg/Getty Images)
“Worker leverage in the labor market has declined significantly, with the worker leverage ratio (rate of layoffs and layoffs) falling below pre-pandemic levels for the first time since the pandemic recession, and down about 50% from the peak of the pandemic recession. “It's a huge resignation,” she added.
August data was also revised downward to show 7,861,000 unfilled jobs instead of the 8,040,000 jobs previously reported.
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The JOLTS report showed that job seekers' influence is waning. (Angus Mordaunt/via Bloomberg/Getty Images)
The JOLTS report spearheads several notable labor market reports scheduled for release this week, with ADP's private sector employment figures due out on Wednesday; Department of Labor September employment statistics on friday.
A Reuters poll of economists predicted Friday's jobs report would likely be 115,000 in October, after an unexpectedly strong 254,000 jobs were added in September.
If that happens, October's employment report will remain at its lowest level in six months. federal reserve system Continue to lower interest rates.
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The Federal Reserve's policy-making arm, the Federal Open Market Committee, is scheduled to meet next week and announce its next decision on rate cuts on Thursday. (Robert Schmidt/via AFP/Getty Images)
The Federal Reserve's policy-making arm, the Federal Open Market Committee, is scheduled to meet next week and announce its next decision on Thursday. lower interest rates In September for the first time in four years. Markets currently expect the Fed to cut interest rates by 25 basis points, following a larger-than-usual 50-point rate cut in September.
“The JOLTS report suggests that the Fed should not be deterred from further rate cuts due to stronger-than-expected jobs numbers. 'We should be cautious in the face of the data,' Pollack said.
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“The decline in resignations is consistent with continued downward pressure on wage growth and disinflation, a fact that Fed directors will no doubt keep in mind at their meeting next week,” he added.
Reuters contributed to this report.
