Driven by significant growth in the business services sector, the number of job vacancies in the United States rose to its highest level in six months in November
In November, the number of job vacancies in the United States rose to the highest level in six months, primarily driven by a surge in positions in the business services sector, with job vacancies increasing from 7.8 million to 8.1 million, exceeding expectations. Although there was a decrease in job vacancies in the accommodation and food services sector as well as in manufacturing, the overall data broke a nearly three-year downward trend, indicating a solid labor market. Federal Reserve Chairman Jerome Powell stated that the labor market is cooling, and the focus has returned to inflation issues. The market expects a slowdown in hiring activity in December, but the unemployment rate may remain at 4.2%
According to the Zhitong Finance APP, in November, the number of job vacancies in the United States rose to the highest level in six months, primarily driven by a surge in positions in the business services sector, while demand for labor in other industries showed mixed results.
According to the Job Openings and Labor Turnover Survey (JOLTS) data released by the U.S. Bureau of Labor Statistics on Tuesday, the number of job vacancies increased from a revised 7.8 million in October to 8.1 million, exceeding Bloomberg's survey forecast of economists.
This increase was almost entirely driven by the professional and business services as well as the finance and insurance sectors. Meanwhile, job vacancies in the accommodation and food services industry and manufacturing have decreased.
The growth in job vacancy data breaks a downward trend that has persisted for nearly three years. Previously, this trend had raised concerns about a deterioration in the labor market and served as a basis for the Federal Reserve's consecutive interest rate cuts. However, current data indicates a more robust labor market, while inflation has remained stubborn over the past few months, reducing market expectations for further rate cuts by the Federal Reserve this year.
Federal Reserve Chairman Jerome Powell stated at the December meeting that the labor market is "cooling in a gradual and orderly manner" and hinted that the Fed's focus has returned to inflation issues. The minutes of this meeting will be released on Wednesday, which may provide further clues about the policy direction.
This report is released ahead of Friday's employment data. The market expects a slowdown in hiring activity by employers in December, but still at a healthy level, with the unemployment rate likely remaining at 4.2%. This data will provide important evidence for the market to further assess the U.S. labor market and economic trends