U.S. job openings stay high in May, keeping labor market tight

  • Job openings drop 427,000 to 11.3 million in May
  • Voluntary quits little changed at 4.3 million
  • ISM services sector index slips 0.6 point to 55.3 in June

WASHINGTON, July 6 (Reuters) – U.S. job openings fell less than expected in May, pointing to a still tight labor market that could keep the Federal Reserve on an aggressive monetary policy path as it battles high inflation.

Though a survey from the Institute for Supply Management on Wednesday showed its measure of services sector employment contracted in June for the third time in the last five months, businesses complained they were “unable to fill positions with qualified applicants,” and that “demand for talent is higher.”

The Fed is trying to cool demand for labor and the overall economy to bring inflation down to its 2% target.

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“As long as the labor market remains strong, the Fed is likely to keep interest rates moving upward to slow activity…

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