US employers advertised fewer jobs in August
WASHINGTON: US employers advertised fewer job openings in August and kept hiring flat, another sign the American jobs market has lost strength since spring. The Labor Department reported Friday that job openings slid to 5.4 million in August from a record high 5.7 million in July. Hiring was littlechanged at 5.1 million. The number of people quitting jobs - a measure of confidence in the job market - was also essentially unchanged from July at 2.7 million. Quits have been flat for the past year after rising steadily in the aftermath of the 2007-2009 Great Recession.
The job market has weakened the past two months, reflecting slower global economic growth. Cautious employers added just 142,000 jobs in September, pulling hiring for the July-September quarter down to a lackluster 167,000 jobs a month from an average 231,000 from April through June.
In August, the United States had 1.5 unemployed people for every job opening, down from a peak of 6.8 in July 2009, a month after the recession ended. Unemployment was 5.1 percent in August and September.
“The labor market is coming off the boil a little,” Paul Ashworth, chief U.S. economist at Capital Economics, wrote in a research report. But the level of job openings reported Friday is still healthy, “so this is hardly a disaster.”
Factory output drops US manufacturing production fell for the second straight month in September as factories cranked out fewer appliances, computers, and electronics. Factory output declined 0.1 percent, the Federal Reserve said Friday, following a drop of 0.4 percent in August. Manufacturers also cut back on production of steel and other metals.
The decline suggests that a strong dollar, weak overseas economies, and cautious U.S. consumers are holding back factory output. Many companies are also focused on reducing stockpiles that were built up in the spring by cutting back on orders for new goods. Overall industrial production, which includes mining and utilities, fell 0.2 percent, also its second straight decline. Mining output plunged 2 percent as energy companies sharply reduced oil and gas drilling. Utility output rose 1.3 percent.
Factories have had a tough year and there is little sign of improvement any time soon. A strong US dollar and weak overseas growth have hammered US exports. The dollar has risen about 13 percent in value against other currencies in the past 12 months. That makes US products more expensive, and therefore less attractive, in other countries.
US consumers have also slowed their spending in the past two months. That’s left many businesses with warehouses full of unsold goods. With such large inventories they see little need to order new products. Big overseas economies are grappling with slower or nonexistent growth, including China, Canada, Europe, and Brazil. Canada, the United States’ largest trading partner, is in recession.
China and Brazil had been critical sources of demand for American-made industrial machinery, such as mining trucks, construction equipment, and agricultural machines. Their economic slowdowns have hit sales and profits for companies such as Caterpillar and United Technologies.
Falling oil prices have also dragged down factory output. Crude oil prices, which were around $60 per barrel in the spring, have fallen to about $49. The decline has forced energy firms to curtail drilling, eliminating much of the need for new pipelines and equipment that had boosted factory orders in previous years. A private survey earlier this month found that US manufacturing activity expanded last month at the slowest pace in two years. Measures of new orders and production also dropped sharply, suggesting weakness in manufacturing is likely to continue.
Overall, the economy is expected to expand at just a 1 percent to 1.5 percent annual rate in the July-September quarter, a sharp slowdown from 3.9 percent in the April-June quarter. —AP