Job Market: What's Happening in the U. S. ?

A Market in Flux

The U. S. job market is currently experiencing a downturn. In October, there were approximately 7.7 million job openings, a slight decrease from September. However, this is a significant drop from the peak of 12.1 million openings in March 2022, when the economy was rebounding from COVID-19 lockdowns.

Rising Layoffs and Declining Confidence

Layoffs have also increased, reaching nearly 1.9 million in October, the highest since January 2023. Additionally, fewer people are quitting their jobs, a sign that workers are not feeling optimistic about the job market.

The Impact of High Interest Rates

High interest rates have contributed to the cooling of the job market. The Federal Reserve raised rates in 2022 and 2023 to combat inflation. Now, the Fed is meeting to decide whether to cut rates. While inflation remains above their 2% target, the job market is showing signs of weakness.

Government Shutdown Adds to the Confusion

The government shutdown has further complicated the situation. The October job openings report was delayed, and the September report was not published separately. Instead, the numbers were combined with October's.

Forecasts for November

Forecasters predict that employers added fewer than 38,000 jobs in November. This would push the unemployment rate up to 4.5%, the highest in nearly four years. However, compared to historical standards, this is still not too severe.