Key Points
- U.S. job openings were flat in October at 7.7 million, signaling a cooling labor market.
- Layoffs rose, and the number of people quitting their jobs declined, both negative signs for the economy.
- The Federal Reserve is in a difficult position, weighing a shaky job market against stubborn inflation.
- President Trump’s trade tariffs are contributing to economic uncertainty and higher prices.
The U.S. job market remained stagnant in October, with job openings holding steady at 7.7 million as the American economy navigates a period of deep uncertainty.
A Tuesday report from the Labor Department showed that employers posted 7.67 million available positions in October, barely a change from September’s 7.66 million. The report, which was delayed by the recent government shutdown, also contained troubling signs: layoffs increased, and the number of people voluntarily quitting their jobs—a key sign of worker confidence—fell.
The job market has been cooling for a while, a sharp decline from its peak of 12.1 million openings in March 2022. This slowdown is partly the result of high interest rates engineered by the Federal Reserve to bring down soaring inflation.
However, the broader economic picture is confusing. President Donald Trump’s high tariffs on most imports have created new pressures, with some businesses passing those costs on to consumers, keeping inflation stubbornly high. This puts the Federal Reserve in a tough spot as it meets this week.
While a shaky job market would normally justify an interest rate cut, persistent inflation makes such a move risky. Still, most expect the Fed to cut rates for the third time this year.
Adding to the chaos, the 43-day federal shutdown has muddled economic data. This jobs report was released late, and the government won’t even release an October unemployment rate because the data couldn’t be collected. The full picture of the fall labor market won’t become clearer until the delayed November report is released.
