U.S. job postings fall in September, hit a 5-month low

Wednesday, November 7, 2012

— U.S. employers posted fewer job openings in September after advertising more in August than first estimated. The report suggests hiring will likely remain modest in the coming months.

The Labor Department said Tuesday that job openings dropped by 100,000 to 3.56 million, the fewest in five months. August’s openings were revised up to 3.66 million.

The number of available jobs has jumped about 63 percent since July 2009, one month after the recession ended. It remains well below the more than 4 million jobs a month advertised before the recession began in December 2007.

Jobs may be harder to come by as more American companies retrench in the face of a slowing global economy and the so-called fiscal cliff. The figures show the October gain in private employment, which was the biggest in eight months, will probably be difficult to sustain without faster economic growth.

The weak global economy and the fiscal cliff — more than $600 billion of tax increases and budget cuts scheduled to take effect next year unless Congress acts — are probably preventing more companies from posting as many job openings.

“Hiring is the most costly expense for a business,” Kurt Rankin, an economist at PNC Financial Services Group Inc. in Pittsburgh, said before the report. “Until a framework for policy can be determined, which will come with the election and the resolution of the fiscal cliff, businesses are not likely to ramp up hiring.”

The job market remains very competitive. With 12.1 million people unemployed in September, there were 3.4 unemployed people, on average, competing for each open job. In a healthy economy, that ratio is roughly 2-to-1.

Employers filled fewer available positions in September than in August. And the number of people who quit fell to the lowest level in 10 months. That’s a bad sign for the job market, because it suggests workers see fewer opportunities to move to a better job. Workers tend to quit when they have other job offers.

One positive sign in the report: Layoffs fell.

Hiring looked a little better in October, according to the Labor Department’s employment report released Friday. Employers added 171,000 jobs last month and hiring in August and September was better than first estimated.

The unemployment rate rose to 7.9 percent last month from 7.8 percent in September. But that was because more Americans began searching for work, likely reflecting increasing optimism about their chances.

The employment report measured net hiring and unemployment, while Tuesday’s report looked at total hiring, layoffs and resignations.

Job openings fell in manufacturing, construction, hotels and restaurants, and in government. There was also a big drop in openings in professional and business services, which includes both high-paying jobs such as architects and engineers as well as temporary services.

Information for this article was contributed by Christopher S. Rugaber of The Associated Press and by Alex Kowalski, Elizabeth Dexheimer and Chris Middleton of Bloomberg News.

Business, Pages 33 on 11/07/2012