Breaking: US JOLTS Job Openings fall to 7.44 million in September vs. 7.99 million expected


The number of job openings on the last business day of September stood at 7.44 million, the US Bureau of Labor Statistics (BLS) reported in the Job Openings and Labor Turnover Survey (JOLTS) on Tuesday. This reading followed the 7.86 million (revised from 8.4 million) recorded in August and came in below the market expectation of 7.99 million.

"Over the month, hires changed little at 5.6 million. The number of total separations was unchanged at 5.2 million," the BLS noted in its press release. "Within separations, quits (3.1 million) and layoffs and discharges (1.8 million) changed little." 

Market reaction to JOLTS Job Openings data

The US Dollar came under bearish pressure with the immediate reaction. At the time of press, the US Dollar Index, which set a three-month-high above 104.60 earlier in the day, was flat on the day near 104.30. 

US Dollar PRICE Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the British Pound.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   0.13% -0.11% 0.11% 0.05% 0.32% 0.25% 0.30%
EUR -0.13%   -0.23% -0.03% -0.08% 0.19% 0.12% 0.21%
GBP 0.11% 0.23%   0.22% 0.16% 0.43% 0.34% 0.44%
JPY -0.11% 0.03% -0.22%   -0.06% 0.22% 0.12% 0.23%
CAD -0.05% 0.08% -0.16% 0.06%   0.27% 0.20% 0.28%
AUD -0.32% -0.19% -0.43% -0.22% -0.27%   -0.08% -0.02%
NZD -0.25% -0.12% -0.34% -0.12% -0.20% 0.08%   0.07%
CHF -0.30% -0.21% -0.44% -0.23% -0.28% 0.02% -0.07%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).


This section below was published as a preview of the US JOLTS Job Openings data at 08:00 GMT.

  • The US JOLTS data will be watched closely by investors ahead of the release of the October employment report on Friday.
  • Job openings are forecast to retreat slightly below 8 million in September.
  • The state of the labor market is a key factor for Fed officials when setting policy.

The Job Openings and Labor Turnover Survey (JOLTS) will be released on Tuesday by the US Bureau of Labor Statistics (BLS). The publication will provide data about the change in the number of job openings in September, alongside the number of layoffs and quits.

JOLTS data is scrutinized by market participants and Federal Reserve (Fed) policymakers because it can provide valuable insights regarding the supply-demand dynamics in the labor market, a key factor impacting salaries and inflation. Job openings have been declining steadily since coming in above 12 million in March 2022, pointing to a steady cooldown in labor market conditions. In August, however, the downward trend halted as the number of job openings climbed above 8 million from 7.7 million in August.

What to expect in the next JOLTS report?

Markets expect job openings to come in at 7.99 million on the last business day of September. Federal Reserve (Fed) policymakers have made it clear after the July policy meeting that they are shifting their focus to the labor market, given the encouraging signs of inflation retreating toward the central bank’s target.

It is important to note that, while the JOLTS data refers to the end of September, the official Employment report measures data for October. 

The upbeat employment report for September, which showed that Nonfarm Payrolls (NFP) rose by 254,000, caused market participants to refrain from pricing in another large Fed rate cut at the policy meeting to be held on November 7. Assessing the recent employment data, Kansas City Fed President Jeffrey Schmid argued that the labor market was normalizing after a period of record over-employment and untenable low unemployment rates, rather than an outright deterioration.

The CME FedWatch Tool currently shows that markets are nearly fully pricing in a 25 basis points (bps) rate reduction at the next policy meeting. Meanwhile, the probability of one more 25 bps rate cut in December currently stands at around 72%, against a 27% chance of a policy hold.

In case there is a positive surprise in the job openings data, with a reading of at or above 8.5 million, the immediate reaction could boost the US Dollar (USD) by causing investors to reassess the probability of a December rate cut. On the other hand, a disappointing print at or below 7.5 million could hurt the USD. 

"Over the month, hires changed little at 5.3 million. Total separations changed little at 5.0 million," the BLS noted in its August JOLTS report. "Within separations, quits (3.1 million) continued to trend down and layoffs and discharges (1.6 million) changed little."

Fed FAQs

Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.

The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.

In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed’s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.

Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.

When will the JOLTS report be released and how could it affect EUR/USD?

Job openings’ numbers will be published on Tuesday at 14:00 GMT. Eren Sengezer, European Session Lead Analyst at FXStreet, shares his view on the potential impact of JOLTS data on EUR/USD:

“Unless there is a significant divergence between the market expectation and the actual print, the market reaction to JOLTS data is likely to remain short-lived, with investors refraining from taking large positions ahead of the third-quarter Gross Domestic Product (GDP) data and the October employment report, which will be published on Thursday and Friday, respectively.”

“EUR/USD’s near-term technical outlook suggests that the bearish bias remains intact. The Relative Strength Index (RSI) indicator on the daily chart stays below 40 and the 20-day Simple Moving Average (SMA) continues to move away from the 100-day SMA after completing a bearish cross late last week.”

“On the upside, 1.0870 (Fibonacci 23.6% retracement level of October downtrend, 200-day SMA) aligns as key resistance. If EUR/USD rises above this level and starts using it as support, technical buyers could take action. In this scenario, 1.0930 (Fibonacci 38.2% retracement, 100-day SMA) could be seen as the next bullish target before 1.1000 (round level). Looking south, first support could be spotted at 1.0770 (end-point of the downtrend) before 1.0700 (round level) and 1.0620 (static level from April).”

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD remains on track to snap five weeks of losing streak

AUD/USD remains on track to snap five weeks of losing streak

AUD/USD consolidates the previous day's strong move up to over a two-week high and remains on track to register gains for the first time in six weeks. The unwinding of the Trump trade, the Fed's failure to indicate that it was likely to pause rate cuts, the RBA's hawkish stance and hopes for more stimulus from China act as a tailwind for the Aussie.

AUD/USD News
USD/JPY holds steady above 153.00; intervention fears might cap gains

USD/JPY holds steady above 153.00; intervention fears might cap gains

USD/JPY edges higher on Friday and reverses a part of the previous day's corrective slide from its highest level since July 30. The upbeat market mood and the BoJ rate-hike uncertainty undermine the safe-haven JPY. That said, speculations that Japanese authorities might intervene in the markets could cap the pair.

USD/JPY News
Gold price consolidates above $2,700 amid mixed cues

Gold price consolidates above $2,700 amid mixed cues

Gold price hovers above $2,700 during the Asian session on Friday and looks to build on the overnight solid recovery from the vicinity of the 50-day SMA support, or over a three-week low. In the absence of strong hawkish signals from the Fed, the unwinding of the so-called Trump trade and retreating US bond yields keep the USD bulls on the defensive.

Gold News
XRP needs to overcome trendline resistance to stage rally, investors step up buying pressure

XRP needs to overcome trendline resistance to stage rally, investors step up buying pressure

XRP exchange reserves across the Binance and Upbit crypto exchanges have begun trending downward after rising by nearly 62 million XRP between November 3 and 5.

Read more
Outlook for the markets under Trump 2.0

Outlook for the markets under Trump 2.0

On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures