Latest Job Openings and Labor Turnover Summary reveals decrease in job openings by 1.1 million in August

CAPE GIRARDEAU, Mo. (KBSI) – Tuesday’s Job Openings and Labor Turnover Summary revealed that job openings decreased by 1.1 million in August. 

Despite this decrease, there are still more job openings than there are unemployed people. There are roughly 1.7 job openings for every unemployed person in the United States. 

Southeast Missouri State professor David Yaskewich interpreted this difference. 

“In other words, what that number is telling us is that the labor shortage is still here,” he said. “We still have a shortage of workers, and any supply issues where it’s difficult finding workers would likely continue.” 

Yaskewich said a tight labor market like we are in right now is not conducive to low inflation rates. 

“It would be hard to imagine the rate of inflation going down when you have a tight labor market,” he said. “So having some slower pace of job growth and some slower pace of job vacancies being available, that’s something we would anticipate occurring before there is any slowdown in buying and any slowdown in the rate of inflation.” 

Because of the tight labor market and high inflation rates, Yaskewich said he expects the Federal Reserve to continue to increase interest rates in an effort to bring the economy back under control and, thus, loosen up the job market. 

“The tight labor market data, the high inflation rate data is probably going to keep the Federal Reserve on course with the continuation of rate increases,” he said. “I don’t think we’re anywhere near the tip of the iceberg when it comes to actually solving the labor shortage or resolving the labor shortage.” 

It will take some time to bring the number of job openings closer to the number of unemployed people, but Tuesday’s report is a step in the right direction.

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