Job openings, a measure of labor demand, dropped 303,000 to 7.146 million by the last day of November, the Labor Department’s Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey, or JOLTS report, on Wednesday.
Data for October was revised down to show 7.449 million job openings instead of the previously reported 7.670 million.
Economists polled by Reuters had forecast 7.60 million unfilled jobs. Hiring dropped by 253,000 positions to 5.115 million in November, consistent with lackluster job gains even as economic growth was robust in the third quarter.
Economists say policy uncertainty mostly related to import tariffs has left businesses reluctant to increase their headcounts, resulting in a jobless economic expansion. Some employers also are integrating artificial intelligence in certain roles, diminishing the need for labor.
Economists argue that the labor market is experiencing structural challenges rather than cyclical weakness.
The BLS is likely to report on Friday that nonfarm payrolls increased by 60,000 jobs in December after advancing by 64,000 in November, a Reuters survey of economists predicted. Attention is likely to center on the unemployment rate for fresh clues on the health of the labor market and near-term monetary policy outlook.
The jobless rate is projected to have eased to 4.5% in December after accelerating to more than a four-year high of 4.6% in November. The November unemployment rate was partially distorted by the 43-day federal government shutdown, which also prevented the collection of household data for October.
The unemployment rate for October was not published for the first time since the government started tracking the series in 1948.
(Edited by : Srabastee Biswas)
