Vacancies with US employers unexpectedly increased in December 2022, signaling solid job demand. This is something the Federal Reserve is closely monitoring as strong labor demand fuels wage inflationary pressures, thwarting the central bank’s efforts to curb price growth.
Job openings in December rose to a five-month high, to 11 million, from 10.4 million the previous month and 10 million, according to the U.S. Department of Labor’s Job Openings and Labor Turnover Survey, or JOLTS. .3 million consensus. This is the largest increase since July 2021 and mainly reflects an increase in vacancies in accommodation and food services.
The ratio of job openings to jobless persons rose to a near record high of 1.9 in December from 1.7 the previous month. It was around 1.2 before the pandemic.
Many economists expect the Fed’s monetary tightening to push the economy into a recession, also driving up unemployment.
Finally, we recall that today’s ADP data instead showed an increase in loans in the private sector, in January, at the weakest pace for two years (+106 thousand units), even if the numbers largely reflect last month’s adverse weather conditions.