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

Published

2 years ago

August 9, 2023

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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

Hamas names three Israeli hostages it says it will release today

Published

2 hours ago

February 8, 2025

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Hamas names three Israeli hostages it says it will release today

Hamas has released the names of three Israeli hostages it says it will release today in the fifth such swap of a fragile ceasefire in Gaza.

The hostages are Eli Sharabi, Ohad Ben Ami and Or Levy, Hamas armed wing spokesperson Abu Obeida said in a Telegram post.

An Israeli official confirmed Israel had received the three names from Hamas.

In return for the captives’ release, Hamas said it expects 183 Palestinian prisoners to be released.

Both Mr Ami, 56, and Mr Sharabi, 52, were taken from Kibbutz Be’eri during the 7 October attack. The cross-border attack saw around 1,200 Israelis killed and around 250 people taken hostage.

Mr Levy, 34, was abducted from the Nova music festival.

Of the Palestinian prisoners being freed, 18 have been serving life sentences, 54 were serving long sentences and the vast majority, 111, were detained in Gaza during the war.

Eli Sharabi

Mr Sharabi’s wife Lianne Sharabi was born in Bristol.

She, along with their children, 16-year-old Noiya and 13-year-old Yahel, were killed in the 7 October attack.

His brother Yossi was also killed after being taken hostage.

In a statement after news he would be released was announced, Mr Sharabi’s lawyers said the “family has already lost too much… [they] are pleased and relieved that Eli Sharabi is reportedly on the list for release by Hamas”.

It added: “It is long past time to bring Eli home.”

Or Levy

Mr Levy was captured by militants from a bomb shelter near the Nova music festival.

His wife Einav was killed during the 7 October attack. Their son Almog, a toddler, is staying with his grandparents.

Mr Levy is from the city of Rishon Lezion, where he worked as a computer programmer.

Some of Mr Levy’s family previously spoke about his kidnapping and the death of his wife.

Speaking around Hanukkah last year, his brother Michael Levy told Sky News’s Yousra Elbagir: “I have three little girls but it won’t be the same. Hanukkah is a happy holiday – you light candles, you sing and eat all sorts of things but for us it is not a real holiday without Or.”

Ohad Ben Ami

Mr Ben Ami, a father of three, was taken hostage with his wife Raz, who was released during the brief ceasefire period in November.

His daughter Ella Ben Ami previously spoke to Sky News about missing her dad Mr Ami, as she pleaded for his release.

“On the eve of Christmas, on the 24 December, it will be his birthday, and I don’t want to celebrate it without him,” she told Sky News in 2023.

Ms Ami was previously one of the first to tell the world what happened on 7 October, calling an Israeli TV channel while hiding.

Row over aid access

Earlier on Friday, Hamas accused Israel of breaching the ceasefire accord and held off announcing the names of the Israeli hostages until the deadline had passed.

The militant group claimed Israel delayed the entry of hundreds of trucks carrying food and other humanitarian supplies agreed under the truce deal and held back all but a fraction of the tents and mobile homes needed to provide people shelter in the devastated enclave.

“This demonstrates clear manipulation of relief and shelter priorities,” Hamas said in a statement.

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COGAT, the Israeli military agency that is overseeing the aid deliveries into Gaza, denied the accusation.

It added Israel would “not tolerate violations by Hamas”.

The claims and counter-claims highlight the fragility and uncertainty of the ceasefire.

This has been heightened by US President Donald Trump recently saying the US could take over Gaza and move the Palestinian population out.

Israel’s air and ground war in Gaza has killed more than 47,000 Palestinians, according to Gaza health officials, and displaced the majority of the strip’s population.

Fragile ceasefire deal

So far, 13 of the 33 female, older male and child hostages set to be released in the first phase of the multi-phase agreement have returned to Israel.

Five Thai hostages have also been released.

Hundreds of Palestinian prisoners and detainees have been released in exchange, often returning to large crowds.

Work on the second stage of the agreement, aimed at the release of around 60 male hostages and the withdrawal of Israeli troops from Gaza, has begun.

An Israeli negotiating team was expected to fly to Doha today, according to media reports.

World

‘Let’s do a deal’: Zelenskyy touts Ukraine’s rare earth stores to Trump

Published

2 hours ago

February 8, 2025

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'Let's do a deal': Zelenskyy touts Ukraine's rare earth stores to Trump

Volodymyr Zelenskyy has told Donald Trump “let’s do a deal” as he offered the US a partnership over Ukraine’s stores of rare earth and minerals.

Earlier this week, Mr Trump said he wanted Ukraine to supply the US with critical resources in exchange for financial support in its war with Russia.

In an interview with Reuters on Friday, Mr Zelenskyy said: “If we are talking about a deal, then let’s do a deal, we are only for it.”

While emphasising that Kyiv was not proposing “giving away” its resources, he said he was open to a mutually beneficial partnership to develop them jointly.

Ukraine-Russia war latest: Ukrainian forces seize land inside Russia

Rare earths are a group of 17 metals that are vital in the production of high-performance magnets, electric motors and consumer electronics.

Mr Zelenskyy touted the country’s reserves of titanium and uranium as Europe’s largest.

According to the World Economic Forum, Ukraine also has the potential to become a key supplier of lithium, beryllium, manganese, gallium, zirconium, graphite, apatite, fluorite and nickel.

Showing a map of Ukraine’s mineral deposits, he then said Russia currently has control of less than 20% of the country’s mineral resources – but that includes about half its rare earth deposits.

“Putin is not just grabbing them [minerals] along with the land, he is already thinking about how to get other partners in his alliance – North Korea, Iran… and he will give them access,” Mr Zelenskyy said.

“This is very rich land. This does not mean that we are giving it away to anyone, even to strategic partners. We are talking about partnership…

“Let’s develop this together, make money, and most importantly, it’s about the security of the Western world.”

The Ukrainian president added that Kyiv and the White House were discussing the idea of using the country’s underground gas storage sites to store American liquefied natural gas, calling it “very interesting”.

He also said he would like to discuss the US having priority when it came to rebuilding Ukraine, saying it would amount to “a lot of money for business”.

‘Not accepting Russia’s ultimatums’

He also insisted that Mr Trump must meet with him before he meets with the Russian president, “otherwise it will look like a dialogue about Ukraine without Ukraine”.

He added: “I don’t know what compromises can be discussed at the negotiating table, we have not reached that point…

“It is important for people to understand that Ukraine is negotiating, not accepting ultimatums from Russia.”

He also stressed Ukraine’s need for security guarantees from its allies as part of any settlement.

It comes as Mr Trump said he may meet with Mr Zelenskyy in the White House as early as next week. The two last met in New York in September last year.

Mr Trump also repeated his interest in meeting the Russian president with whom he said he always had a “good relationship”.

Speaking to reporters while meeting with Japanese Prime Minister Shigeru Ishiba, Mr Trump said: “I’d like to see it end, just on a human basis. I’d like to see that end. It’s a ridiculous war.”

Mr Zelenskyy also told Reuters in his interview that thousands of North Korean soldiers have now returned to fight Kyiv’s forces in the Kursk region of Russia.

A Ukrainian special forces commander told Sky News last month that it appeared that North Korean troops had been temporarily pulled back from the frontline after heavy losses.

The commander, who went by the codename “Puls,” claimed the forces had been seen blowing themselves up with grenades rather than risk capture.

World

Will Trump make space great again?

Published

2 hours ago

February 8, 2025

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The US is back in the race to the moon but this time, the competition is China. Determined not to lose, President Donald Trump is pushing for America to return to the moon, backed by billionaires like Elon Musk and Jeff Bezos. But as costs rise and delays mount, could the focus shift from the moon to Mars?

On the Sky News Daily podcast, Tom Cheshire speaks to Science and Technology editor Tom Clarke and space journalist Eric Berger about the escalating price of securing America’s place in the space race – and whether Mars could be the next “MAGA mission”.

Producer: Emma Rae Woodhouse
Editor: Paul Stanworth