WASHINGTON, Aug 29 - U.S. job openings dropped to the lowest level in nearly 2-1/2 years in July as the labor market gradually slows, bolstering expectations that the Federal Reserve will keep interest rates unchanged next month.
"Although the labor market is still tight, the degree of excess demand is declining and is coming about through companies reducing the number of vacancies rather than increasing layoffs and unemployment," said Conrad DeQuadros, senior economic advisor at Brean Capital in New York."There is plenty here to make the case that not only is the labor market rebalancing but at this point it is doing so without pushing up unemployment.
CONDITIONS STILL TIGHT The labor market has largely been resilient despite 525 basis points in interest rate hikes from the Fed since March 2022, in part as employers filled positions, which opened up during the COVID-19 pandemic.