U.S. Job Openings Miss Forecast, Weighing on Fed Outlook

U.S. job openings fell to 7.079 million in August, according to the Bureau of Labor Statistics, missing economists’ forecast of 7.23 million. The total was 256,000 below July’s revised figure of 7.335 million.

The job openings rate declined to 4.3% from 4.4% in July. Hiring rose slightly to 5.192 million, while layoffs fell to 1.641 million. The United States added 162,000 jobs in August, and the unemployment rate held at 4.1%.

The data showed weaker demand for workers without a sharp increase in layoffs. The Federal Reserve considers employment conditions and inflation when setting interest rates. The central bank raised its main interest rate by 0.25 percentage points in September, bringing the target range to 3.75%-4.00%. Officials have indicated that further increases may be needed to reduce inflation.

Investors reduced expectations for another rate increase in October after the report. New York Fed President John Williams said the central bank did not need to act quickly, according to comments cited in market coverage.

Gold rose about 1.42% on Tuesday to around $4,172.40 per ounce. Lower interest-rate expectations and Treasury yields can increase demand for gold, which does not pay interest.

Bitcoin initially gained after the report as investors assessed the prospect of lower rates and bond yields. It later gave up those gains when longer-term Treasury yields rose. The 10-year Treasury yield reached 5.293% during the month, its highest level since 2007, amid concerns about inflation, government borrowing and high borrowing costs.

The September jobs report is scheduled for release on Oct. 2. Investors will also track unemployment, inflation, Treasury yields and comments from Federal Reserve officials.