- Labor demand firmed in September. Job openings rose 333,000 to 7.52 million from a revised 7.19 million in August, a four-month high, according to Bureau of Labor Statistics data released Tuesday. The figure topped every estimate in a Bloomberg survey of economists, and CNBC reported it beat the 7.125 million economists polled by Dow Jones expected.
- Workers are moving and employers are holding on. Layoffs slumped to their lowest level since March 2025, while the quits rate, the share of people voluntarily leaving their jobs each month, climbed to 2.1%, the highest in more than a year.
- The gains were broad. Openings rose in professional and business services, state and local government, manufacturing, trade and transportation, and construction, and manufacturing openings hit their highest since late 2023. The West saw the biggest rise, followed by the Midwest and Northeast, while vacancies fell in the South.
- The labor market looks balanced. There were about 1.1 vacancies per unemployed worker in September, generally consistent with a balanced market and well below the 2-to-1 peak of 2022. Federal Reserve officials watch this ratio closely as a gauge of labor supply and demand.
What Happened?
The Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey for September showed openings at 7.52 million, hiring picking up, and layoffs at their lowest since March 2025. Overall hiring was driven by accommodation and food services, an industry that also saw many workers quit. “For now, all signs point to a solid labor market, even if it is difficult for pockets of workers – namely those who are unemployed,” Oxford Economics senior US economist Matthew Martin said in a note.
Why It Matters?
For more than a year many employers have been reluctant to add or cut staff amid high prices and geopolitical uncertainty, so a jump in openings and hiring is a sign companies may be gaining confidence as growth accelerates and consumers keep spending. A pickup would need to last several months to signal a shift into a higher gear. A resilient labor market also gives the Fed room to stay focused on inflation: the central bank raised rates in September for the first time in three years and held them steady last week, and Treasury yields rose on Tuesday, with the 10-year up more than 4 basis points to 4.935%, according to CNBC.
What’s Next?
The next read comes Friday, when the government’s October jobs report is expected to show the US added 65,000 jobs with the unemployment rate unchanged. ISM services and ADP employment data are due Wednesday, according to CNBC. A strong run of labor data would reinforce the case for the Fed to keep policy tight while it assesses inflation, with the economy and affordability also key issues for voters in Tuesday’s midterm elections.
