Job Openings Picked Up in July, Showing the Labor Market Remains Hot

The Labor Department’s employment report for July was unexpectedly strong, showing a gain of 528,000. Mr. Zandi said the “red hot” JOLTS data would put even greater focus on the August hiring data, due Friday.

The demand for labor is particularly remarkable because, based on inflation-adjusted gross domestic product, the economy contracted slightly in the first half of the year. Despite higher prices, the raw amount of goods and services being exchanged remains considerable, fueling demand for labor.

“Millions of Americans still can find employment or even trade up to a higher-paying position,” said Robert Frick, an economist at Navy Federal Credit Union. “We may be seeing a second wind for economic growth after high inflation and slowing job growth in the spring.”

Some commentators say the data on openings may be somewhat overstated because businesses have little incentive to take down listings, even if the urgency of hiring has waned.

And there are signs that the tide may be shifting. A survey of more than 100 chief financial officers by Deloitte, a consulting and financial advisory firm, showed that nearly all of them expected decreases in revenue, hiring and overall expansion in the coming year.

Their growth expectations for wages and staffing declined. They expect annual wage growth to be 4.8 percent and personnel growth to be 2.6 percent — both down from 5.3 percent in the previous quarterly survey.

Article source: https://www.nytimes.com/2022/08/30/business/economy/jolts-jobs-economy.html