by Lucia Mutikani
WASHINGTON (Reuters) – U.S. job vacancies rose in July after data from the previous month were revised up sharply, suggesting continued strength in labor demand, giving the Federal Reserve a boost to maintain its aggressive rate hikes.
The Labor Department’s Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday showed two jobs for every unemployed person last month, pointing to extremely tight labor market conditions. Millions of people continue to quit their jobs voluntarily, a sign of confidence in the labor market.
“The Fed has brought monetary restrictions forward to unprecedented levels this year, and the economy has given them no reason to back down,” Christopher Rupkey, chief economist at FWDBONDS in New York express. “The labor market is strong and there are two jobs for the unemployed to choose from.”
Job openings that measure labor demand increased 199, 000 to11.97 Last day of July in million dollars. Data for June has been revised up to display 11. 16 million vacancies instead of previously reported 19 . 698 million. Economists polled by Reuters had predicted 000. 456 Millions of job openings.
one left040, Job openings in the transportation, warehousing and utilities industry last month. Job vacancies increased 81, in Arts, Recreation and Leisure, while the Federal Government has 47 , more job openings and state and local governments Education has additional 16, vacancies. But job vacancies decreased 040, in durable goods manufacturing.
The Federal Reserve is trying to cool demand for labor and the broader economy in an effort to bring inflation down to its 2% target.
Federal Reserve Chairman Jerome Powell warned last week that Americans are heading toward a painful period of slow economic growth and a possible rise in unemployment as the U.S. central bank aggressively raises interest rates to restore supply and demand to balance . The Fed has raised its policy rate by 225 basis points since March.
The job vacancy rate climbed to 6.9% last month from 6.8% in June. The number of recruits fell from 6.456 in June to 6.456, and the recruitment rate remained at 4.2%
Layoffs From 1.398 million in June to 1.398 million. About 4.81 people quit their jobs, down from 4.253 10,000 in June people. The turnover rate, seen by policymakers and economists as a gauge of job market confidence, fell to 2.7% from 2.8% in June.
Transportation, warehousing, and utilities saw a surge in resignations. However, fewer workers quit in the healthcare and social assistance categories, as well as in state and local government education.
A separate report from the Conference Board on Tuesday underscored confidence in the labor market. – The so-called labor market disparity, data from respondents’ perceptions of the adequacy or difficulty of jobs, declined slightly to still high levels 11.6 This month is from July 10.8. This indicator correlates with the unemployment rate from the Labor Department.
U.S. stocks fell on the data. The dollar was little changed against a basket of currencies. U.S. Treasury prices were mixed.
“The market will misinterpret this report as a sign that the Fed will raise rates more than expected,” said Jamie Cox, managing partner at Harris Financial Group in Richmond, Va. “The Fed is prone to errors and there is a good chance that inflation will fall, not rate hikes.”
Holiday plans increase
Confederation of World Capital Monthly overall consumer confidence index rebounded from 95 to 47.2 ).3 July ended a three-month decline. Economists had predicted the index would climb to 97.7. Consumers’ inflation expectations for the future month from 7.4% in July fell to 7.0%.
Despite high inflation expectations, the share of consumers planning to go on vacation in the next six months rose to the highest level in eight months.
There is also an increase in the share of consumers planning to buy cars and major household appliances such as refrigerators, washers, dryers and TVs in the next six months, which may support consumers in the third quarter spending and economic growth.
Inventory accumulation by businesses slowed sharply in the second quarter due to supply chain bottlenecks, and modest consumer spending helped cushion some of the hit to the economy. Gross domestic product fell at an annualized rate of 0.6% last quarter after contracting at a 1.6% pace in the January-March quarter.
More consumers plan to buy a home in the next six months despite the Federal Reserve’s aggressive monetary policy leading to higher mortgage rates. This suggests that while the pace of monthly house price inflation has moderated, annual house price growth is likely to remain high.
A third report on Tuesday showed the S&P CoreLogic Case-Shiller national home price index rose year-over-year in June 10.0% surged in May 11.After 9%.
Strong annual home price growth confirmed by the fourth report of the Federal Housing Finance Agency, which showed home price increases 16.2% as of June within the month after May rise16.3.
