A man walking a dog walks past an aid search sign advertised along East Main Street in East Islip, New York on February 17, 2022.
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Job vacancies fell by nearly half a million in April, narrowing the historically large gap between vacancies and available workers, the Bureau of Labor Statistics reported on Wednesday.
Total openings fell 455,000 from the revised March number up to 11.4 million in April, according to FactSet’s estimate, according to the bid survey. office work and job rotation.
This left a gap of 5.46 million between opportunities and available workers, still high by historical standards and reflecting a very tight labor market, but below the almost 5.6 million difference compared to March. As a proportion of the active population, the job opening rate fell 0.3 percentage points to 7%.
Federal Reserve policymakers are looking closely at job numbers to see signs of labor influx. The shortage of workers has pushed wages much higher and fueled inflationary pressures that have remained at their highest levels since the early 1980s.
“The April JOLTS report shows that the job market remains tight, with near-record job offers and layoffs hitting an all-time low,” said Robert Frick, a corporate economist at the Navy Federal Credit Union. “This almost guarantees another healthy employment report on Friday and means employers’ attention is focused on expansion despite high inflation and higher outstanding interest rates.”
However, the JOLTS report was combined with a closely monitored manufacturing reading to show a potential change in the employment picture.
The ISM manufacturing index showed that companies, in general, expect to slow down the pace of hiring. Specifically, the employment component showed a reading of 49.6, the first under-50 result since November 2020, according to Bespoke Investment Group.
Anything below 50 represents a reduction, as the survey assesses business expansion versus contraction. The number of main ISMs was 56.1 in May, which was higher than the 55.4 in April.
Despite the potential slowdown in manufacturing hiring, worker mobility remains strong.
The JOLTS report showed that 4.4 million workers left their positions in April, little changed from the March reading and reflecting the ongoing “Great Resignation” which has seen an unprecedented movement in the market in the middle. of the high demand for labor.
Recruitment varied little during the month, although there was a decline in the leisure and hospitality sector. The sector saw a drop in recruitment by 77,000, or half a percentage point to 7.2%. A year ago, the rental rate was 9%.
The figures came two days before the May non-farm payroll report. The Dow Jones estimate is 328,000 more jobs added, after a gain of 428,000 in April, and the unemployment rate will drop to 3.5%.