US job openings fall to 8.5 million in March, the lowest level in more than 3 years
WASHINGTON (AP) — U.S. jobs openings slid in March to the lowest level in more than three years, but stayed at historically high levels in a sign that the job market remains resilient in the face of higher interest rates. ... The Labor Department reported Wednesday that employers posted 8.5 million vacancies in March, down from 8.8 million in February and the fewest since February 2021.
The number of Americans quitting their jobs fell to the lowest level since January 2021 — a sign of diminishing confidence in their ability to find something better. But layoffs fell.
Monthly job openings are down sharply from a peak of 12.2 million in March 2022 but remain at a high level. Before 2021, they'd never exceeded 8 million — a threshold they have now reached for 37 straight months.
The high level of job openings reflects a surprisingly strong U.S. labor market. When the Federal Reserve began raising interest rates in March 2022 to combat a resurgence in inflation, the higher borrowing costs were expected to tip the economy into recession and push up unemployment.
U.S. job growth totaled 175,000 in April, much less than expected, while unemployment rose to 3.9%
Source: CNBC
Published Fri, May 3 2024 8:30 AM EDT Updated 5 Min Ago
The U.S. economy added fewer jobs than expected in April while the unemployment rate rose, reversing a trend of robust job growth that had kept the Federal Reserve cautious as it looks for signals on when it can start cutting interest rates.
Nonfarm payrolls increased by 175,000 on the month, below the 240,000 estimate from the Dow Jones consensus. The unemployment rate ticked higher to 3.9% against expectations it would hold steady at 3.8%.
Average hourly earnings rose 0.2% from the previous month and 3.9% from a year ago, both below consensus estimates and an encouraging sign for inflation.
The jobless rate tied for the highest level since January 2022. A more encompassing rate that includes discouraged workers and those holding part-time jobs for economic reasons also edged up, to 7.4%, its highest level since November 2021. The labor force participation rate, or those actively looking for work, was unchanged at 62.7%.
• The S&P 500 increased 1.3% Friday to end the day at 5,127.79, having gained 7.5% thus far in 2024.
• Ten of the 11 S&P 500 sectors were higher on the day, as Information Technology (+3.0%) and Communication Services (+1.0%) were the strongest-performing S&P 500 sectors, while Health Care (+0.2%) and Energy (0.0%) underperformed.
• By the 4:00 p.m. equity market close, the US 10-year Treasury yield decreased 8bp to 4.50%; WTI crude oil decreased to $78.13 per barrel; and gold decreased -0.1% to $2,302.54 per ounce.
Why Did This Move Happen?
• The S&P 500 rose on Friday as a softer jobs report eased fears that the economy may be overheating. In a “bad-news-is-good-news” dynamic, both stocks and bonds rallied, as investors boosted their expectations for Fed policy easing.
Inflation Cooled in April as Price Gains Slowed by Courtenay Brown
May 15, 2024
Introduction:
(Axios) The Consumer Price Index (CPI) rose 0.3% in April and the core measure that strips out food and energy increased by the same amount, the Labor Department said on Wednesday.
Why it matters: Inflation slowed for the first time this year, helping ease concerns that progress on moderating consumer prices had stalled out.
• The report on Wednesday showed the overall consumer price index increased 3.4% over the last 12 months, compared to 3.5% in March.
• Meanwhile, the core measure rose 3.6% in the year through April, versus the 3.8% the prior month.
Zoom in: The slight cooldown in price increases come after a stretch of data showing inflation had stopped slowing after big declines last year.
High Rates May Not be Bringing Down Inflation as Much as the Fed Thinks by Neil Irwin
May 21, 2024
Introduction:
(Axios) "If a tree falls in the forest and no one is around to hear it, does it make a sound?" is an old philosophical thought experiment. There is a monetary policy equivalent right now: If high interest rates don't visibly slow the economy, are they doing anything to bring inflation down?
Why it matters: It's unclear how much the Fed's high interest rate policy is exerting downward pressure on economic activity, raising profound questions about the central bank's power to guide the economy and manage inflation.
• No recession has occurred, contrary to forecasts when the Fed raised interest rates by more than 5 percentage points in 2022 and 2023. The unemployment rate has remained below 4% for 27 straight months.
• GDP growth has been above its long-term trend over the last year, and even interest-sensitive residential investment has been positive in the last three quarters.
