Job Listings Starting To Trend Lower
By Alyce Andres, Bloomberg Markets Live commentator and reporter
Online data show companies are putting the brakes on job listings for a third month (see “Fed Mission Accomplished: Real-Time Indicators Show The Labor Market Just Cratered“).
It may be a sign that the Fed rate hikes partly aimed at cooling wage inflation amid a red-hot job market are starting to work.
In the economics world, three in a row can make a trend. Active job listings in the US dropped 2.8% in June, according to LinkUp data. That’s on top of 4.2% and 3.1% decreases in May and April, according to the firm. LinkUp is a global job-market data and analytics firm in the online jobs space.
Declines in job listings were seen nationwide, with 94% of states seeing a decline in help wanted ads. Deleted job listings rose 6.9%, according to LinkUp data released Tuesday. Companies typically decrease hiring to maintain revenues and profitability. After that, layoffs become a risk.
The JOLTS report, once a sleepy indicator, is very much in the hot seat now. It rose in importance after Fed Chairman Powell said last fall it is a labor-market gauge that policy makers watch closely. Jobs openings fell in April and May, and another decline in June could mean a trend is also under way in the JOLTS data.
Thu, 07/21/2022 – 14:05