By Lucia Mutikani
WASHINGTON (Reuters) – U. S. job openings fell in April but remained at particularly high levels, suggesting wages will continue to rise as corporations struggle to hire staff and keep inflation uncomfortably high for some time.
Wednesday’s Job Opening and Job Rotation Survey, or JOLTS report, also showed layoffs at a record high, underscoring the tightness of the hard labor market. source of hard work and call for the unemployment rate to rise too high.
So far, there are few signs that the U. S. central bank’s competitive economic policy will be in the process of being a failure to do so. The U. S. is holding back demand across the economy. Factory activity picked up in May as demand for goods remained strong, the data showed. The reports further dispelled fears of a recession shutdown, fueled by emerging interest rates and tighter economic conditions.
“Today’s reports show that the economy is slowing down particularly and that the hard labor market remains very strong,” said Christopher Rupkey, lead economist at FWDBONDS in New York.
Job offers, a measure of labor demand, fell from 455,000 to 11. 4 million on the last day of April. March data was revised upwards to show a record 11. 855 million vacant positions instead of the 11. 5 million previously reported. Job openings in April were in line with economists’ expectations.
Job vacancies in the physical care and welfare industry were reduced by 266,000. There were 162,000 fewer job vacancies in the retail industry sector, while job vacancies in the hotel and food industry were reduced by 113,000.
But the transportation, storage and utilities sector had 97,000 more tasks unfilled. Job openings increased to 67,000 in non-durable manufacturing, while durable goods brands had 53,000 more vacant positions.
Task creation fell to 7. 0% from 7. 3% in March.
Fed Chairman Jerome Powell last month described job vacancies as “extraordinarily high” and said “there is a path through which we can have moderate demand in the hard labor market and thus reduce job vacancies without increasing unemployment. “stable at a two-year low of 3. 6% in April.
The Fed has raised its key interest rate through 75 fundamental issues since March. It is expected to increase the policy rate by a part of a point at its June and July meetings.
The tighter hard labor market was corroborated through the Fed’s Beige Book report on Wednesday, symptoms of easing are emerging. symptoms that tensions in the market have begun to subside. “
In April, there were 1. 92 job offers for every unemployed, compared to 2. 0 in March. Economists said it was possible for companies to publish task posts on various sites, keeping the lists even when the vacancy applied.
“However, behind the massive gap between vacancies and hires, as well as the gap between vacancies and the unemployed, is the hard and tight job market,” said Sophia Koropeckyj, senior economist at Moody’s Analytics in West Chester, Pennsylvania.
Hiring fell from $59 billion to $6. 586 billion. This left the hiring rate unchanged at 4. 4%. There were 73% more task assignments than hiring. Even considering the unemployed who need to paint but are not looking for paintings, the gap between available tasks and available staff is still large. in force, from 3. 6% in March.
“The hole remains close to its point in U. S. history. UU. de the post-war period, suggesting that wage expansion will remain a company until further innovations in the source of hard work and the normalization of job vacancies rebalance the hard labor market,” Goldman Sachs economists wrote in a note.
Layoffs and layoffs fell through 170,000 to an all-time low of 1. 246 million, most commonly concentrated in small businesses. Resignations remained high, with 4. 424 million resignations, little replacement since March. Most of the resignations were from small businesses.
Wall Street stocks were down. The dollar appreciated against a basket of currencies. Treasury has fallen.
STRONG DEMAND FOR GOODS
In a third report, the Institute of Supply Management said its national factory activity index recovered to 56. 1 last month from 55. 4 in April. A reading above 50 indicates one from the production industry, which accounts for 12% of the U. S. economy. USA
The survey followed a report released last Friday that appeared to see customer spending rise sharply in April. The country has been hit by fears of an economic slowdown due to Fed rate hikes, emerging Treasury yields and falling stock prices.
Demand for goods remains resilient, even as spending moves to facilities such as restaurants. Spending on goods increased as the COVID-19 pandemic limited
The six largest production industries, adding machinery and transportation equipment, recorded moderate to strong growth. Manufacturing remains restricted by tangled chains, which have become even more entangled through Russia’s unprovoked war against Ukraine and new lockdowns in China as part of Beijing’s COVID-19. 0 politics.
Transportation brands said semiconductor shortages were “worsening due to China’s COVID-19 lockdowns. “Manufacturers of various products reported that “problems in the supply chain force us to particularly increase our delivery times. “
“Between supply chain disruptions and still strong demand, inflationary pressures may remain,” said Isfar Munir, an economist at Citigroup in New York.
(Reporting through Lucia Mutikani; Editing via Chizu Nomiyama and Andrea Ricci)
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