Employment market shows signs of cooling amid rate hikes

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Job openings have been edging lower since April as rising inflation tightened its grip on businesses and crimped consumer spending.

In June, openings fell to 10.7 million, their lowest levels since September. Openings are still at an historically high level, having never exceeded 8 million in a month prior to a year ago.

The Fed has been aggressively raising interest rates in an effort to slow the economy and cool the hottest inflation in four decades. The central bank has raised its key short-term interest rate to the highest level since 2018.A key concern from Wall Street is that the Fed's rate hikes could be too aggressive and push the economy into a recession.

“We need fewer job openings, which reduces the chances of bidding wars for talent and we’re starting to see that," said ” Jeff Buchbinder, equity strategist for LPL Financial.

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