(KNSI) – The labor market is finally beginning to show stress after a year of unrelenting interest rate hikes from the United States Federal Reserve.
The central bank released its monthly JOLTS report on Tuesday, which showed a little over 8.8 million job openings nationwide in July. That is down from over 10 million in April and a high of 12 million in March 2022. The number is still elevated compared to historical levels, though.
Job openings are falling just as Minnesotans are beginning to look for work in greater numbers. The state’s labor force has grown for five consecutive months, surging by over 26,000 people in that period. The combination of new job seekers and fewer available positions should damper wage growth.
Another closely watched measure is the quit rate. Fewer employees are quitting their jobs, which aligns with a tightening employment picture. During recessions, the quit rate falls because workers stay at their current position rather than risk a lengthy bout of unemployment or taking a chance on starting their own business.
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