Drop in Openings Signals Limited U.S. Job Growth

http://www.bloomberg.com/news/2012-10-10/job-openings-in-u-s-decreased-32-000-in-august-hiring-rose.html

Job openings in the U.S. dropped for a second straight month in August, indicating companies are reluctant to beef up payrolls through year-end without faster economic growth. 

The number of positions waiting to be filled fell by 32,000 to 3.561 million from a revised 3.593 million the prior month that was less than previously estimated, the Labor Department said today in a statement. Hiring increased at the same time firings rose to a three-month high. 

Companies such as Foot Locker Inc. are facing a weakening global economy and the possibility of automatic tax increases and government cutbacks, helping explain limited payroll growth. At the same time, a jobless rate that fell below 8 percent last month for the first time in more than three years shows some progress in the labor market.  

Today’s report helps illuminate the dynamics behind the government’s monthly employment figures. Payrolls rose by 114,000 workers, the fewest in three months. While job openings eased in August, they were still 409,000 higher than the same month last year.