U.S. job openings tumbled last month to their lowest level since January 2021, a sign that the labor market is losing some momentum. Still, openings remain well above pre-pandemic levels.
The Labor Department reported Tuesday that the number of job openings dropped to 7.4 million in September from 7.9 million in August. Economists had expected the level of openings to be virtually unchanged.
The number of layoffs also rose. And the number of Americans who quit their jobs fell below 3.1 million, the lowest level since August 2020, a sign that more people are losing confidence in their ability to find better work elsewhere.
Though job openings have slowed sharply since peaking at 12.2 million in 2022, they remain higher than they were before the coronavirus pandemic paralyzed the American economy in early 2020. When the economy roared back with unexpected strength from the COVID-19 recession, companies scrambled to find enough workers to keep up with customer orders.
The overheating economy caused an outburst of inflation, and the Federal Reserve responded by raising its benchmark interest rate 11 times in 2022 and 2023. Inflation has plummeted from a peak of 9.1 in June 2022 to 2.4 in September.
