Vacancies at U.S. employers dropped in February to the lowest since May 2021, suggesting a cooling in labor demand in some industries but still indicative of a job market that’s too tight for the Federal Reserve.
The number of available positions decreased to 9.9 million from a downwardly revised 10.6 million a month earlier, the Labor Department’s Job Openings and Labor Turnover Survey, or JOLTS, showed Tuesday. Vacancies were below all estimates in a Bloomberg survey of economists.
The figures, which can be volatile on a monthly basis, suggest labor supply and demand are moving into better balance. Still, further progress is needed — particularly in the service sector — to help alleviate wage pressures. Enduring strength in the job market remains a key hurdle for the Fed as it seeks to bring inflation down to its 2% goal.
