Job Openings Fall In September

Hiring has been keeping pace but job openings, in a possible warning sign of slowing for the labor market, have been on the decline. Job openings fell 3.8 percent in September to 7.024 million, which is the lowest total since March last year and is down 5.0 percent from September last year.

Hirings rose 0.8 percent in the month to 5.934 million and, compared to September last year, were up 4.7 percent. The spread between hirings and openings, at 1.090 million, is the narrowest since February last year.

In a further sign of slowing in the labor market, quits fell a sharp 2.9 percent in the month to 3.498 million which hints at less worker mobility and less pressure on wage growth.

Growth in nonfarm payrolls, though still favorable, has been slowing this year and the slowing in openings in this report points to continued slowing for payrolls ahead. For the Federal Reserve, these results highlight the risk that employment may be moving from strength to moderation and that the outlook for wage growth may have already peaked, results that favor the doves in their arguments for continued rate cuts.