Job openings record largest single-month drop since early 2020

However, Mike Fratantoni, senior vice president and chief economist at the MBA, said the September findings were “still faster than can be sustained in the US economy over time” in spite of the slowed growth.

“Other data clearly signaling a slowing economy lead us to forecast a sharp drop in job growth over the coming months,” Fratantoni said. “The unemployment rate dipped back to 3.5%, equal to the pre-pandemic low, and wage growth remains strong with average hourly earnings up 5% over the past year.”

“The number of job openings decreased in August sharply. This does suggest that employers are first moving to eliminate those openings and slow the pace of hiring before turning to layoffs as the economy cools,” Frantantoni added. “We expect the Federal Reserve will increase rates by at least another 50 basis points in November and could do more if inflation fails to decelerate.”