Job openings plunge to lowest level in 2 years in welcome news for Fed

Published

2 years ago

September 1, 2023

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Businesses posted far fewer open jobs in July and the number of Americans quitting their jobs fell sharply for the second straight month, clear signs that the labor market is cooling in a way that could reduce inflation.

The number of job vacancies dropped to 8.8 million last month, the Labor Department said Tuesday, the fewest since March 2021 and down from 9.2 million in June.

Yet the drop appeared to be even steeper because Junes figure was initially reported as 9.6 million.

That figure was revised lower Tuesday.

Julys figure was still healthy historically before the pandemic the number of openings had never topped 8 million.

And there are still roughly 1.5 available jobs for each unemployed worker, which is also elevated but down from a peak last year of 1.9.

While it might take more time, more applications, and stronger job interview performances to land a job than it did in 2021 and 2022, there are still plenty of jobs going unfilled, said Julia Pollak, chief economist at ZipRecruiter.

Fewer Americans also quit, with 3.5 million people leaving their jobs last month, down from 3.8 million in June, the lowest since February 2021.

Most Americans quit work for other, better-paying jobs, and during and after the pandemic there was a big spike in quitting as workers sought higher pay and benefits elsewhere.

A separate report Tuesday also showed that consumers were less confident in the economy last month, a trend that could cool consumer spending in the coming months.

The Federal Reservewill likely welcomeTuesdays data, because fewer job openings and less quitting reduces pressure on employers to raise pay to find and keep workers.

Pay raises are great for employees, but they can also lead companies to increases prices to offset the higher labor costs, which can push up inflation.

Evidence that the economy is slowing, on top of a steady decline in inflation from its peak of 9.1% in June 2022 to 3.2% last month, could prompt the Fed to skip a rate hike at its next meeting in September.

Federal Reserve Chair Jerome Powell and other Fed officials have hoped that a steady drop in the number of job openings could help bring down inflation, without requiring the layoffs that many economists have warned would be necessary to rein in prices.

So far, job openings have declined substantially without increasing unemployment a highly welcome but historically unusual result that appears to reflect large excess demand for labor, Powell said in a high-profile speech Friday at the Feds annual conference in Jackson Hole, Wyoming. But it isnt clear whether the decline will persist, he said, and this uncertainty underscores the need for agile policymaking.

Later this week, the government will issue its jobs report for August, which economists forecast will show that employers added 170,000 jobs this month.

While that would be a solid increase, it would be the smallest in almost three years, and also point to a potential softening in the economy.

World

US military says eight ‘narco-terrorists’ killed in strikes on three boats in Pacific

Published

1 hour ago

December 16, 2025

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US military says eight 'narco-terrorists' killed in strikes on three boats in Pacific

Eight people have been killed in US military strikes on three boats it has accused of smuggling drugs in the Pacific Ocean.

The US military’s Southern Command said the strikes targeted “designated terrorist organisations” killing three “narco-terrorists” in the first vessel, two in the second boat and three in the third.

No evidence the vessels were involved in drug trafficking has been given, but a video showing the strikes on the boats was posted on social media.

Southern Command added that defence secretary Pete Hegseth ordered the strikes, and claimed intelligence confirmed the vessels were using known drug trafficking routes and engaged in drug trafficking.

It is unclear where the vessels were from, but the strikes mark the latest in Donald Trump‘s “war” with drug cartels, which has also seen vessels targeted in the Caribbean Sea, including near Venezuela.

Over the past several months, the US has been carrying out a large-scale military build-up in the southern Caribbean, with the stated goal of combating drug trafficking.

In its first lethal strike on 2 September, the White House posted on X that it had conducted a strike against “narcoterrorists” shipping fentanyl to the US, without providing evidence of the alleged crime.

Sky’s Data & Forensics unit last week verified that in the four months up to 10 December, 23 boats were targeted in 22 strikes, killing 87 people.

US forces also seized a crude oil tanker, named Skipper, off the coast of Venezuela last week.

The government in Caracas, led by President Nicolas Maduro, who insists the real purpose of the US military operations is to force him out of office, branded the ship’s seizure a “blatant theft” and an “act of international piracy”.

On Monday, Mr Trump signed an executive order declaring fentanyl a “weapon of mass destruction”.

The order instructs the State and Treasury departments to pursue the financial assets of and sanctions on financial institutions and groups involved in fentanyl trafficking.

It also calls for greater co-operation between the Pentagon and the Justice Department on fentanyl and drug trafficking issues.

The latest strikes on vessels allegedly trafficking drugs come on the eve of briefings on Capitol Hill for all members of Congress as questions mount over the Trump administration’s military actions.

Mr Hegseth, secretary of state Marco Rubio, and other top national security officials are expected to provide closed-door briefings for politicians in the House and Senate.

Politics

FCA consults on UK crypto rules for exchanges, lending and DeFi

Published

2 hours ago

December 16, 2025

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FCA consults on UK crypto rules for exchanges, lending and DeFi

The United Kingdom’s Financial Conduct Authority (FCA) launched a series of consultations on proposed rules for digital asset markets, marking the next phase in the government’s effort to establish a comprehensive regulatory framework for crypto assets.

The proposals, published across three consultation papers, cover crypto trading platforms, intermediaries, staking, lending and borrowing, market abuse, disclosures and decentralized finance (DeFi). The FCA said consultation responses will be open until Feb. 12, 2026.

The regulator said the proposals aim to support innovation while ensuring that consumers understand the risks associated with crypto investment. It added that regulations should not eliminate risks entirely, but should ensure that participants operate responsibly and transparently.

“Our goal is to have a regime that protects consumers, supports innovation and promotes trust,” said David Geale, the FCA’s executive director for payments and digital finance, adding that industry feedback will help shape the final rules.