US Job Openings: October Sees Modest Growth, Hiring Remains Tepid - What It Means For American Workers

(MENAFN- Live Mint) Job openings in the United States increased only modestly in October, but hiring remained subdued as employers continued to treat carefully in an uncertain economic environment.

The slight uptick in vacancies suggests that while demand for workers hasn't disappeared, companies are still reluctant to expand their workforce amid ongoing concerns about economic stability.

This comes just a day before the United States Federal Reserve is expected to announce the key benchmark interest rates for the US economy.

What does statistics say about jobs openings and hiring?

Job openings edged up by 12,000 to 7.6 million at the end of October, the Labor Department's Bureau of Labor Statistics reported on Tuesday in its Job Openings and Labor Turnover Survey, or JOLTS report.

The figure came in slightly above economists' expectations, with a Reuters poll forecasting 7.1 million unfilled jobs.

On the other hand, hiring in the United States dropped by 218,000 to 5.1 million during the same period. The report also incorporated data for September, whose release was canceled because of the 43-day federal government shutdown, Reuters reported.

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The BLS said it had“temporarily suspended use of the monthly alignment methodology for October preliminary estimates,” adding that“use of this methodology will resume with the publication of October final estimates.”

There were 7.658 million job openings in September, while hiring stood at 5.3 million. Together, the report indicate that the labor market remains in what economists and policymakers describe as a“no-hire, no-fire” phase - a period marked by minimal layoffs but equally restrained hiring.

What caused the labor market stagnation?

The stagnation in the labour market can be attributed to a reduced supply of workers, driven by a decline in immigration that began in the final year of former President Joe Biden's term and has further accelerated under President Donald Trump's second administration.

Additionally, the increasing adoption of artificial intelligence in certain job roles is also allowing companies to avoid hiring new employees, especially for entry-level positions.

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Financial markets expect the Federal Reserve to cut its benchmark overnight interest rate by another 25 basis points, bringing it down to the 3.50%-3.75% range on Wednesday, 10 December, as concerns mount over the cooling labour market. The US central bank has already lowered rates twice this year.

Earlier this year, the committee members were hesitant to cut the rates before finally easing the policy measures in September 2025, but this time, the US Fed has to be careful, as high interest rates can push up the unemployment numbers in the economy.

When is US employment report expected to be released?

According to Reuters, policymakers will not have access to November's employment report, which was also delayed by the government shutdown. The report, now scheduled for release next Tuesday, will include the updated nonfarm payrolls data for October.

Meanwhile, October's employment report was cancelled, hence the unemployment rate for October will not be available. This was caused by the shutdown, which prevented the authorities concerned from collecting data for the household survey from which the jobless rate is determined, Reuters reported.

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