On Average, More Than One Job Opening Available per Unemployed Worker

Last week, U.S. retail sales growth dramatically missed economists’ expectations for September, according to Commerce Department data. The Labor Department released their data from the August Job Openings and Labor Turnover Survey, indicating more than one job opening for every unemployed worker. Also, the Federal Open Market Committee shared the minutes from the end-of-September meeting, indicating a potential for interest rates to continue to rise.

• U.S. retail sales rose slightly in September, despite dramatically missing economists’ expectations. Retail sales in September 2018 rose 0.1% from August and 4.7% year-over-year. Economists polled by Reuters had expected a monthly increase of 0.6%. Excluding sales of automobiles, gas, food, and building materials, the so-called core retail sales rose 0.5%. The second straight month of weak retail sales was hindered by reduced consumer spending at bars, restaurants, and department stores.

• Job openings hit an all-time high in the U.S. during August. According to the Job Openings and Labor Turnover Survey, or JOLTS, as published by the Labor Department, U.S. job openings reached 7.14 million in August. The data also showed that there is more than one opening for each job seeker, which stood at 6.23 million at the end of August. The JOLTS also found a near-record level of quits during the month, indicating worker confidence in finding a new job. The overall tightness of the labor market lends itself to the possibility of rising wages to come as employers compete to retain and attract skilled workers.

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• A summary of the minutes from the Federal Open Market Committee’s September 25-26 meeting indicates that Fed officials seem keen that continually raising interest rates is the most effective method for preserving the steady economy. At the September meeting, the Committee agreed to raise interest rates a quarter of a point to a range of 2.0 to 2.25. The Committee members even indicated a possibility of raising rates beyond a neutral position and into a more restrictive stance to prevent inflation from suddenly overshooting the Fed’s target rate of 2% year-over-year.