Job openings tick up slightly in reassuring sign for labor market

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The number of job openings ticked up in July after three straight months of declines as the labor market continues to show strength despite the Federal Reserve's efforts to slow economywide spending through massive hikes in its interest rate target.

Openings across all sectors increased to 11.2 million in July, up slightly from 10.7 million the month before, according to data released on Tuesday by the Bureau of Labor Statistics. The previous record number of job openings was notched in March, which was upwardly revised to 11.9 million.

The numbers come as the Fed jacks up interest rates more aggressively and tightens its monetary policy to combat explosive inflation. The central bank raised rates by half a percentage point in May and then took the even more aggressive step of hiking rates by three-fourths of a percentage point in June and July — the most ambitious upward hikes since 1994.

Fed Chairman Jerome Powell’s annual address at Jackson Hole, Wyoming, on Friday spooked investors because he hinted that another massive hike of 75 basis points might be in store following the central bank’s September meeting. Powell warned that the road to bringing down explosive inflation will likely entail some economic pain along the way.

The speech has contributed to fears that the United States is careening toward a recession, a scenario that some economists contend has already arrived.

 

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