US active jobs index dips 14% in October 2022, says GlobalData | The Financial Express

US active jobs index dips 14% in October 2022, says GlobalData

Companies remain cautious about hiring as discussions around inflationary pressures, economic slowdown, and potential recession are on the rise.

US active jobs index dips 14% in October 2022, says GlobalData
Cost controls, restructuring, reorganization, digital initiatives are also impacting hiring.

Job Openings and Labor Turnover data for September 2022 are scheduled to be released on November 1, 2022. The Job Openings and Labor Turnover Survey (JOLTS) program produces data on job openings, hires, and separations.

GlobalData’s US Active Jobs Index continued its fall in October 2022, dipping by over 14% when compared to the previous month. Even though the active jobs open for application are still high compared to the pre-COVID-19 levels, this is a substantial fall compared to September 2022, which saw a 7.8% decline. The US Bureau of Labor Statistics JOLTS September 2022 results are due for a release on 1 November 2022, while GlobalData Index is calculated on a near real-time basis.

Inflation is fueled when the labour market is strong and wage growth is putting more money in workers’ pockets. This is mostly due to increased demand for currently offered products and services while the US economy continues to struggle with supply challenges. A growing employment sector is perhaps what the central bankers do not want.

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New job postings declined across the US, with states like California, Texas, Florida, Pennsylvania, and Illinois, seeing a decline of over 50%. Companies posting new jobs also declined by 5-7% across these states as compared to September 2022.

Srinivas Rahul, Analyst at GlobalData, comments: “Active jobs declined across all industries as companies closed 24% more jobs than the new job postings. Company hiring was selective with around 140 jobs posted for newly created roles in October 2022.”

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The goal for the Fed is to crush job openings without sparking a sustainable move higher in the unemployment rate. However, according to GlobalData Job Analytics Database, companies such as Amazon.com Inc, UnitedHealth Group Inc, JBS SA posted new roles. Examples for newly created senior roles include ‘Radiation Oncology Medical Director – Telecommute’ by UnitedHealth Group Inc.; ‘Director, Regulatory Change Monitoring’ from Standard Chartered; ‘Principal Client Partner’ by Unity Software; and ‘Senior Manager, Medical Billing Operations – Health and Wellness’ by Walmart.

Rahul concludes: “Companies remain cautious about hiring as discussions around inflationary pressures, economic slowdown, and potential recession are on the rise. Cost controls, restructuring/reorganization, digital initiatives are also impacting hiring. Around 100 companies announced layoffs globally in October. Zillow is laying off amidst a slowdown in the housing market. Other companies announcing laying offs in the US include Chesapeake Energy, Fundbox, Oracle, Cerebral, Convoy, Roofstock, Clear Capital, Microsoft.”

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First published on: 31-10-2022 at 19:31 IST