The number of vacancies in the United States fell in June and is below 11 million for the first time in seven months, a sign that the job market is starting to slow, despite still massive resignations.
Read alsoUSA: Growth in manufacturing activity slows again in July (ISM)
SEE ALSO – Joe Biden urges Congress to pass the Cut Inflation Act
Thus, 10.7 million jobs were to be filled at the end of June, according to data from the Bureau of Statistics (BLS) published on Tuesday, against 11.3 million at the end of May.
Labor shortage
This is the first time since November 2021 that there are fewer than 11 million job openings in the United States, “a harbinger of a labor market slowdown“commented on Twitter Julia Pollak, chief economist for ZipRecruiter.
US employers have been facing a labor shortage for a year and a half, failing to recruit, and the number of job vacancies hit a record 11.9 million last March. Employees, therefore, compete to obtain better salary conditions, but also working time or benefits in terms of health insurance or retirement. In June, they are still 4.2 million to have resigned, a level which remains very close to the historic record of November 2021, when 4.5 million resignations had been recorded. Conversely, the number of layoffs remains very low, at 1.3 million in June, compared to a level of around 1.7 to 1.9 million before the pandemic.
A slowdown in the labor market is however desired, as it is an important condition for prices to stop rising. “The labor market remained extremely tightin June, Oren Klachkin, an economist for Oxford Economics, commented in a note. However, “labor market data in the second half of 2022 should point to calmer employment dynamics“, and the July figures, which will be published on Friday, should show”signs of improving labor market conditions“, he underlines.
Read alsoThe banking sector lost 3,400 jobs in 2021
The unemployment rate is expected to remain stable at 3.6%, but job creations should decrease. The job market was a surprise in June, with job gains much larger than expected, and an unemployment rate stable at 3.6% for the fourth month in a row.
SEE ALSO – The United States “will not experience a recession”, says Joe Biden
.
