Stronger economic growth lifts US job openings, but hiring faces cost pressures

In September, US employers issued more job postings, driven by stronger economic growth, according to the Labor Department's Job Openings and Labor Turnover Survey (JOLTS). However, as voters prepare to vote on Tuesday, they remain pessimistic about an economy plagued by rising prices. Job openings surged to 7.5 million in September, up from a revised 7.19 million in August, marking the highest figure since May and a significant increase from the March low of 6.9 million.

Gross hiring, which includes new job gains before accounting for those who quit or lost their jobs, rose, while layoffs fell in September. Although this trend bodes well for future hiring, it will take several months of consistent increases to indicate substantial progress. The job market has been sluggish for nearly three years, with layoffs also historically low, indicating minimal "churn" in the labor market.

While high job security for the employed exists, job seekers face a more challenging situation. The number of job openings now surpasses the number of unemployed individuals, a stark contrast from a year ago when joblessness outnumbered available positions. Heather Long, chief economist at Navy Federal Credit Union, notes that despite the headwinds of high diesel and gas prices and ongoing inflation, companies are gradually increasing their hiring.

Nicole Bachaud, a labor economist at ZipRecruiter, cautions that high inflation and increased interest rates may limit businesses' ability to ramp up hiring in the coming months. She emphasizes that these factors collectively make operating and expanding a business more expensive, likely sustaining downward pressure on hiring until inflation can be effectively curbed.