"The U.S. job market has lost momentum this year, partly because of the lingering effects of 11 interest rate hikes by the inflation fighters at the Federal Reserve in 2022 and 2023 and partly because Trump's trade wars have created uncertainty that is paralyzing managers trying to make hiring decisions. Altogether, Tuesday's JOLTS numbers suggest that the job market remains in an awkward place: Americans who have jobs are mostly safe from layoffs. Unemployment remains low at 4.3%. But jobseekers are struggling to find work."
"Unemployment remains low at 4.3%. But jobseekers are struggling to find work. "Companies are clearly hoarding workers with the economy still at full employment," Carl Weinberg, chief economist at High Frequency Economics, wrote in a commentary. "It will take a bigger blow than what we have seen so far to convince companies that it is safe and prudent - and necessary - to lay off workers.""
Job openings held around 7.23 million last month, slightly above July's 7.21 million and above economists' forecast of 7.1 million. The JOLTS report showed layoffs fell, quits declined, and hiring was the weakest since June 2024. Openings have declined from a March 2022 peak of 12.1 million as the economy recovered from COVID-19 lockdowns. The labor market lost momentum due to lingering effects of 11 Federal Reserve rate hikes and uncertainty from President Trump's trade policies. Unemployment remains low at 4.3%, but jobseekers face difficulty finding work and revisions showed far fewer jobs created last year.
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