US jobs fell to 7.4 million in September, lowest since January 2021

WASHINGTON, D.C.: According to the Labor Department, U.S. job openings dropped in September to 7.4 million, the lowest level since January 2021.

The decline from 7.9 million in August indicates some cooling in the labor market, with the largest reductions in vacancies among healthcare companies and government agencies.

Layoffs also rose in September, while the number of Americans who quit their jobs fell below 3.1 million, the lowest since August 2020. This suggests a slight decline in worker confidence, as fewer people are willing to leave their jobs without another lined up.

"Workers (are) not as confident as they have been about being able to find a job if they quit without another to step into, Carl Weinberg and Rubeela Farooqi of High-Frequency Economics wrote in a commentary. Still, they added, "There is no signal here of any sudden collapse of the labor market here or any imminent recession. The labor market is softer, sure, but it is not imploding."

Job openings, though reduced from their peak of 12.2 million in 2022, are still above pre-pandemic levels. The labor market initially surged back after the COVID-19 recession, as businesses struggled to fill roles amid high demand, which led to rapid inflation. In response, the Federal Reserve raised its benchmark interest rate 11 times across 2022 and 2023, successfully lowering inflation from 9.1 percent in June 2022 to 2.4 percent.

Despite the rate hikes, the economy has shown resilience, avoiding a predicted recession. Job growth, while slower compared to the hiring boom from 2021 to 2023, remains stable, averaging 200,000 new jobs per month from January through September this year-healthy but down from record levels in prior years.

In September, employers added a better-than-expected 254,000 jobs. For October, the Labor Department is anticipated to report an additional 120,000 jobs, a figure likely affected by Hurricanes Helene and Milton and a strike at Boeing. The unemployment rate is expected to hold steady at 4.1 percent, according to FactSet forecasts.