U.S. job openings increased in July showing no signs that demand for labor was slowing, the Bureau of Labor Statistics reported Tuesday.
There were nearly 1 million more job openings than expected in July, showing that the U.S. labor market is still very tight.
Results could force the Federal Reserve to keep on its aggressive monetary policy increasing rates. The Fed is trying to cool demand for labor and the overall economy to bring inflation down to its 2% target.
According to the monthly Job Openings and Labor Turnover Survey, or JOLTS report, job openings rose to 11.239 million. Data for June was revised higher to 11.040 million job openings instead of 10.698 million reported earlier. Economists polled by Reuters had forecast 10.450 million vacancies.
July’s results show openings are outnumbering available workers by just shy of a 2-to-1 margin, as employers are forced to offer higher compensation to attract workers, adding extra fuel to inflation which is near their fastest pace in more than 40 years.
Hiring declined during the month, falling to 6.38 million. People quitting their jobs also dropped, down to 4.18 million.
At last month’s Fed meeting, Chairman Jerome Powell said an “extremely tight labor market” is next.
