U.S. employers posted fewer jobs in June, a sign that the red-hot demand for workers that has been a key feature of the post-pandemic economy is cooling a bit, the Associated Press reports.
Job openings dropped to 9.6 million in June, the Labor Department said Tuesday, down slightly from the previous month, much lower than the 10.3 million in April, and the fewest in more than two years. The government’s report also showed that the number of people who quit their jobs in June fell sharply to 3.8 million from 4.1 million, another sign the job market is slowing.
Tuesday’s report means there are 1.6 jobs for every unemployed worker, down from a peak of 1.9 earlier this year. But that is still much higher than before the pandemic. Since the economy first emerged from the pandemic, job openings have soared — reaching a record 12 million in March 2022. Before the pandemic, they had never topped 7.6 million.
Overall, Tuesday’s report, known as the Job Openings and Labor Turnover Survey, or JOLTS, still paints a picture of a healthy economy, with employers seeking to hire more people. The number of workers quitting is still slightly above pre-pandemic levels, suggesting that many Americans continue to find better-paying opportunities at new jobs.
Average paychecks rose by 4.6% in the April–June quarter compared to a year earlier, above the pre-pandemic pace of about 3%. While that’s great for workers, the Fed worries that unless companies become more productive, such increases are too high to get inflation to its 2% target.
