Home / Business / Vacancies in the US fall to an 18-month low in August as attitudes and economic activity slow

Vacancies in the US fall to an 18-month low in August as attitudes and economic activity slow

Bloomberg News / Landov

A jobseeker looks at a job advertisement. Vacancies in the US fell to an almost 1
8-month low in August.

The Numbers: The number of vacancies fell nationwide for the third consecutive month in August, reaching one and a half The annual low coincides with a decline in attitudes as the US economy slows down.

The number of vacancies fell from 7.17 million in the previous month to 7.05 million in August.

Although the number of vacancies is still slightly higher than the 5.8 million Americans officially classified as unemployed, they have fallen by nearly 8% since the beginning of the year.

"If this trend continues, we'll sink below 7 million to nearly a million," said Nick Bunker, economist at Indeed Hiring Lab.

What happened: The openings fell in manufacturing and information services such as media and in the Public relations strongest, said the Ministry of Labor on Wednesday.

There were more vacancies in trade, transport and construction.

The proportion of people who left their jobs on their own (quota) fell in August from 2.6% to 2.7% among private sector employees. The revised figure for July represented a recession high after 2008.

Employees are more likely to quit one job for another when times are good, but remain in their current jobs when times are difficult. As a rule, workers who move, get better wages.

The churn rate for private sector workers reached a low of 1.4% at the end of the Great Recession 2007-2009, moving at or near a cycle maximum of 2.6% for the year last year.

Overall picture: The number of vacancies has been gradually declining since the beginning of 2019, when an all-time high of 7.63 million was reached. The decline coincided with the slowdown in recruitment.

Whereas many companies had a year ago to find suitable professionals. They found enough to occupy critical positions, Bunker said. What has changed is that companies want to fill fewer jobs altogether.

The US created an average of 157,000 new jobs per month in the third quarter of July-September, down from 226,000 in the last quarter of 2018.

Read: The US creates 136,000 jobs in September, reaching an unemployment rate The 50-Year Low

Economists say a slowdown in the global economy, exacerbated by the US-China trade battle, has played a major role in curbing growth. The positive effects of Trump's tax cuts and a burst of federal spending over the last year have also eased.

Economists now fear that the ongoing trade conflict could trigger a recession if tensions do not subside soon.

What do you say? The number of vacancies "continues to tell a positive story about the labor market, but it is not as impressive as it was a year before the tensions, and the government's resignation and impeachment rage began to weigh on the economy," Ward McCarthy said , Chief Financial Economist at Jefferies LLC.

Market Reaction: The Dow Jones Industrial Average

DJIA, + 0.71%

and S & P 500

SPX, + 0.87%

rose on Wednesday and at least temporarily halted a recent price slide.

The 10-year yield on government bonds

TMUBMUSD10Y, + 2.73%

increased to 1.55%. The yield has dropped from a seven-year high of 3.23% a year ago due to economic concerns.

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