In April, the United States saw a decrease in job vacancies, which is a sign of a cooling labor market. This could potentially slow down inflation and provide relief for the US central bank, which has been dealing with persistent inflation and had to postpone interest rate cuts. There were 8.059 million open jobs in April, which is 296,000 less than in March. This was lower than economists’ expectations of 8.355 million open jobs for the month.
The labor market in the United States has been hot for a long time, with demand for work exceeding supply. However, the decrease in open jobs indicates a potential rise in unemployment, which typically leads to a slowdown in inflation. Financial company Citigroup predicts that the labor market is normalizing and job losses are likely in the coming months. The cooling of the labor market is seen as positive news by many economists as it could lead to lower inflation rates and more stable economic conditions.
In April, the inflation rate in the United States was 3.4 percent, higher than the central bank’s target of two percent over a long period. Initial predictions of interest rate cuts in June have been delayed due to higher-than-expected inflation. Many economists now believe that the central bank will only start lowering interest rates in the fall when inflation rates have stabilized and job growth has slowed down further.
