Despite the larger-than-expected decline in job vacancies reported by the Labor Department on Tuesday, the labor market remains tight, with 1.7 job openings for every unemployed person in February, down from 1.9 in January. Fed officials have been closely monitoring this ratio. Friday's employment report for March will shed more light on the labor market's health.
Job openings, a measure of labor demand, were down 632,000 to 9.9 million on the last day of February, the lowest level since May 2021, the monthly Job Openings and Labor Turnover Survey, or JOLTS report, showed. They fell 1.3 million in first two months of this year. Small and medium-sized businesses, who have been the drivers of job growth, accounted for most of the decrease, with establishments with a 1,000 workers and more reporting a small reduction in job openings.DANGEROUS SITUATION
The Fed last month raised its benchmark overnight interest rate by a quarter of a percentage point, but indicated it was on the verge of pausing further rate hikes due to financial market turmoil. The U.S. central bank has hiked its policy rate by 475 basis points since last March from the near-zero level to the current 4.75%-5.00% range.
Even as job openings declined, the number of people voluntarily quitting their positions increased 146,000 to 4.0 million. The resignations were mostly in small businesses.
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