Job openings hit lowest level in 2 years as demand for workers cools

Published

2 years ago

August 11, 2023

admin

US employers posted fewer jobs in June, a sign that thered-hot demand for workersthat has been a key feature of the post-pandemic economy is cooling a bit.

Job openings dropped to 9.6 million in June, the Labor Department said Tuesday, down slightly from the previous month but much lower than the 10.3 million in April and the fewest in more than two years.

The governments report also showed that the number of people who quit their jobs in June fell sharply to 3.8 million from 4.1 million, another sign the job market is slowing.

The Federal Reserve is seeking to cool the job market, because if companies are less desperate to hire, and fewer workers are quitting to seek higher-paying positions elsewhere, then businesses will be under less pressure to raise pay to find and keep workers.

Smaller pay hikes could help lower inflation, since businesses wont have to lift their prices to offset higher labor costs.

Tuesdays report means there are 1.6 jobs for every unemployed worker, down from a peak of 1.9 earlier this year, though still higher than before the pandemic.

On Friday, the government is set to release the July jobs report, which will show how many positions were added in July and whether the unemployment rate fell below its current level of 3.6%, which is near the lowest in a half-century.

Economists forecast the report will show a gain of 200,000 jobs, with the unemployment rate unchanged, according to a survey by data provider FactSet.

Since the economy first emerged from the pandemic, job openings have soared reaching a record 12 million in March 2022.

Before the pandemic, they had never topped 7.6 million.

Average paychecks rose by 4.6% in the April-June quarter compared to a year earlier, above the pre-pandemic pace of about 3%.

While thats great for workers, the Fed worries that unless companies become more productive, such increases are too high to get inflation to its 2% target.

The Fed last week lifted its key short-term rate for the 11th time in 17 months as part of its ongoing efforts to curb inflation, which is currently at 3%.

Excluding the volatile food and energy categories, however, according to the Feds preferred measure, it rose 4.1% compared with a year ago.

Most economists would have expected such a sharp increase in interest rates to force widespread layoffs and higher unemployment.

Instead, the unemployment rate has barely changed since the Fed began pushing up borrowing costs last year.

Fed Chair Jerome Powell has long held out hope that the higher rates, instead of leading to more layoffs, would simply cause employers to post fewer openings.

At a press conference last week, Powell said that the job market has softened, which should help bring down inflation, through job openings coming down part of the way back to more normal levels.

Typically, when job openings decline, companies also start to lay off workers and push up the unemployment rate.

But so far, thats not happening. Tuesdays report, known as the Job Openings and Labor Turnover Survey, showed that layoffs actually declined in June, to 1.53 million, down from 1.57 million in May.

That is below pre-pandemic trends and suggests companies generally want to hold onto their staffs.

World

Overnight attacks in Russia and Ukraine as Zelenskyy eyes talks with Trump over peace plan

Published

2 hours ago

November 25, 2025

admin

Overnight attacks in Russia and Ukraine as Zelenskyy eyes talks with Trump over peace plan

Donald Trump and Volodymyr Zelenskyy are set to hold talks over the Ukraine peace plan.

US and Ukrainian officials have held discussions in Geneva about a controversial 28-point proposal drawn up by America and Russia, which has since been countered by an amended deal drawn up by Kyiv’s European allies.

The White House said there were still a “couple of points of disagreement” as of Monday night, but spokeswoman Karoline Leavitt said there was a “sense of urgency” to strike an agreement.

“The president wants to see this deal come together, and to see this war end,” she added.

Mr Zelenskyy echoed that message, saying “there is still work for all of us to do to finalise the document”.

“We must do everything with dignity,” he said in his nightly video address, adding: “The sensitive issues, the most delicate points, I will discuss with President Trump.”

It comes after Mr Trump, who had accused Ukraine of not being grateful enough for US military support while the Geneva talks were under way, suggested the process could be moving in the right direction.

He had earlier given Kyiv until Thursday to agree to the plan, but US Secretary of State Marco Rubio downplayed the deadline, saying officials could keep negotiating.

Moscow, however, has already signalled its opposition to the European version of the peace plan.

It would halt fighting at present front lines, leaving discussions of territory for later, and also include a NATO-style US security guarantee for Ukraine.

The talks in Geneva, Switzerland, had begun with Mr Rubio denying the original plan was written by Russia.

It appeared to include a number of longstanding Kremlin demands that have proved impossible for Kyiv, including sacrificing territory Russian forces have not even seized since the war began.

Ms Leavitt has also insisted the US is not favouring the Russians.

Starmer to lead talks of Ukraine’s allies

Ukraine’s allies in the so-called “coalition of the willing” will hold a virtual meeting today, chaired by Sir Keir Starmer.

The British prime minister said the alliance was focused on achieving a “just and lasting peace”.

It “matters for all of us, because the conflict in Ukraine has had a direct impact here in the UK”, he added.

Russia and Ukraine report overnight attacks

The talks will begin hours after the governor of Russia’s Rostov region reported three people had been killed and 10 more injured in a Ukrainian attack overnight.

The Russian defence ministry said 249 Ukrainian drones were downed over Russian regions in total.

Meanwhile, Russian drone strikes in Kyiv left at least two dead and triggered fires on residential buildings – forcing evacuations, and leaving several people injured.

The war was also a topic of discussion in a call between Mr Trump and China’s Xi Jinping on Monday.

Mr Xi urged “all parties” in the conflict to “reduce differences”, according to Chinese state news agency Xinhua.

He reiterated that China supported all efforts conducive to peace.

China has remained a consistent ally of Russia throughout its invasion of Ukraine, and is the top buyer of Russian oil, along with India.

World

Return to China ‘not an option’, Taiwan warns – as Xi mentions issue in phone call with Trump

Published

3 hours ago

November 25, 2025

admin

Return to China 'not an option', Taiwan warns - as Xi mentions issue in phone call with Trump

Taiwan’s prime minister has warned that a “return” to China is not an option.

Cho Jung-tai’s remarks came hours after President Xi Jinping mentioned the issue on a phone call with his US counterpart Donald Trump.

Mr Xi had described Taiwan’s return to mainland China as “an integral part of the post-war international order”.

But the island’s democratically elected government has rejected this – describing Taiwan as a “fully sovereign and independent country”.

“For the 23 million people of our nation, ‘return’ is not an option – this is very clear,” Mr Cho added.

China has offered Taiwan a “one country, two systems” model, but this position is not supported by any mainstream political party.

Meanwhile, relations between Beijing and Tokyo recently plunged to fresh lows after Japan’s prime minister suggested any attack on Taiwan would spark a military response.

Sanae Takaichi’s remarks were swiftly denounced by China’s foreign ministry, which said Japan had “crossed a red line that should not have been touched”.

Sun Yun from the Stimson Centre thinktank said: “My best guess is China is worried about the escalation with Japan.

“The reference to Taiwan and the post-World War II order directly points to the spat with Japan over Taiwan.”

The US has not taken a side when it comes to Taiwan’s sovereignty but is opposed to any use of force to seize the territory.

Mr Trump’s administration has also been ambiguous over whether it would deploy US troops if war broke out in the Taiwan Strait.

Yesterday, Taiwan’s defence ministry spotted a single balloon from China flying over the strait and claims this is part of a campaign of harassment by Beijing.

Chinese officials have previously dismissed these complaints, arguing the balloons are for meteorological purposes.

In other developments, Mr Trump has confirmed that he will visit Beijing in April – with Mr Xi set to travel to Washington for a state visit later in 2026.

Relations have improved in recent weeks after the pair met face to face in South Korea, with the US president moving to cut tariffs.

On Truth Social, he wrote: “Our relationship with China is extremely strong!”

Politics

SEC issues ‘rare’ no-action letter for Solana DePIN project token FUSE

Published

4 hours ago

November 25, 2025

admin

SEC issues ‘rare’ no-action letter for Solana DePIN project token FUSE

The SEC has just issued its second “no-action letter” toward a decentralized physical infrastructure network (DePIN) crypto project in recent months, giving its native token “regulatory cover” from enforcement.

The no-action letter was sent to the Solana DePIN project Fuse, which issues a network token, FUSE, as a reward to those actively maintaining the network.

Fuse initially submitted a letter to the SEC’s Division of Corporation Finance on Nov. 19, asking for official confirmation that it would not recommend the SEC take enforcement action if the project continues to offer and sell FUSE tokens.

Fuse also outlined in its letter that FUSE is designed for network utility and consumptive purposes, not for speculation. They can only be redeemed for an average market price via third parties.

“Based on the facts presented, the Division will not recommend enforcement action to the Commission if, in reliance on your opinion as counsel, Fuse offers and sells the Tokens in the manner and under the circumstances described in your letter,” the Division of Corporation Finance’s deputy chief counsel, Jonathan Ingram, wrote on Monday.

*SEC’s no-action letter to Fuse Crypto. Source:* *SEC*

The latest SEC no-action letter comes just a few months after the SEC issued a similar “highly coveted” letter to Double Zero, which was seen as a result of a new, more crypto-friendly leadership at the SEC.

At the time, DoubleZero co-founder Austin Federa said such letters are common in TradFi but are “very rare” in the crypto space.

“It was a months long process, but we found the SEC to be quite receptive, we found them to be quite professional, quite diligent, there was no crypto animosity.”

The SEC was put under new leadership in April, after Paul Atkins was sworn in as the 34th chairman, and the agency has since been seen taking a more balanced approach to crypto. As part of the leadership, crypto-friendly Hester Peirce also heads up the agency’s crypto task force.

SEC no-action letters are a form of regulatory clarity

Adding to the discussion on X, Rebecca Rettig, a legal representative of Solana MEV infrastructure platform Jito Labs, said that no-action letters are sought after by many crypto projects.