Job openings fall by more than 1M in August; hit worst levels since 2020

Oct. 4 (UPI) -- Job openings in the U.S. plunged in August to their lowest levels since 2020, as the Federal Reserve continues to seek to lower demand for workers.

Available positions dropped from 11.17 million in July to 10.05 million in August, according to the Bureau of Labor Statistics.

The decline in openings was the biggest since April 2020, according to Bloomberg.

The Federal Reserve has tried to walk a tightrope by decreasing job vacancies to cool the labor market without an ensuing jump in unemployment.

The largest decreases in job openings were in health care and social assistance, other services and retail trade.

Nearly 4.2 million Americans quit their jobs in August, which is an increase from July. The number of voluntary job leavers was steady at 2.7%.

"The ratio of job vacancies to unemployed persons fell sharply in August -- such a large drop usually implies a recession," Eliza Winger, an economist told Bloomberg. "If this pace of decline continues, the labor market will be in a much cooler state by early next year, giving the Fed space to end its current tightening cycle."

A United Nations report published on Monday criticized the Federal Reserve's policy of raising interest rates to cool inflation.

"The world is headed towards a global recession and prolonged stagnation unless we quickly change the current policy course of monetary and fiscal tightening in advanced economies," the report said.