The U.S. job market appears to be cooling down, with job openings dropping to a three-year low in April. This decrease could be a positive development in the fight against inflation.
According to the Labor Department’s JOLTS report, job openings fell to 8.059 million at the end of April, the lowest level since February 2021. This decline comes after a record high of 12.0 million openings in March 2022. While the number of people quitting their jobs did increase in April, the Federal Reserve is viewing these signs of a softening labor market as positive indicators.
The Fed has been raising interest rates to combat inflation, and a decrease in job openings suggests there may be less upward pressure on wages, which can contribute to inflation. While the Fed isn’t expected to cut rates next week, financial markets are anticipating potential cuts later this year if inflation shows signs of receding.
Source: Reuters