US job openings rise to 8.1 million despite higher interest rates

Vacancies rose from a revised 7.9 million in April, the first reading below 8 million since February 2021, the Labor Department reported Tuesday.

The U.S. economy and job market have been remarkably resilient in the face of the Federal Reserve's campaign to raise interest rates to rein in inflation. The Fed hiked its benchmark rate 11 times in 2022 and 2023, lifting it to a 23-year high.Defying expectations of a recession, the U.S. economy kept growing and employers kept hiring.

Fed policymakers welcome lower job openings — a relatively painless way to cool a hot job market and reduce pressure on companies to raise wages, which can feed inflation. The Labor Department is expected to report Friday that employers added 190,000 jobs last month, down from 272,000 in May, according to a survey of forecasters by the data firm FactSet. Unemployment is forecast to stay low at 4%.

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