Job Openings Are Rising, but Hiring Is the Slowest Since 2013. But How?
U.S. job openings hit 7.523 million in September, exceeding estimates, but hiring slowed to its weakest pace since 2013, according to the Bureau of Labor Statistics. The hiring rate was 3.4%, while layoffs fell to their lowest since March 2025. Analysts note that low hiring may limit economic growth, impacting the SPDR S&P 500 ETF (SPY), which rose 0.31% on the day but was down 1.98% weekly. The Federal Reserve's rate hike to 4.00% may further strain hiring.
How this was made
The 30-second read
Why it matters
The data may support short‑term equity rally but also signal rising borrowing costs, creating a nuanced risk‑reward profile for traders.
Market read
U.S. labor market figures are a primary driver of equity sentiment; the surprise in job openings could influence S&P 500 performance.
What to watch
The rise in quits and the low layoff rate suggest labor market tightness that could fuel wage inflation and further rate hikes.
Background
September job openings rose above expectations, while hiring stayed weak and the Fed raised rates, creating a mixed macro backdrop for equities.
Ticker impact
The article discusses September job openings and hiring data, noting that the numbers beat forecasts and could influence the S&P 500 ETF (SPY) price.
modest upside pressure as earnings outlook improves, tempered by yield‑driven valuation pressure
Positive labor market backdrop typically lifts equity valuations, yet the Fed rate hike and 10‑year yield near 5% may limit gains.
Market effects
Consumer discretionary and financials may benefit from steady employment, while rate‑sensitive sectors (real estate, utilities) could face pressure.
U.S. equity markets likely see modest lift; global markets may react to the Fed’s rate stance.
U.S. labor data remains a key driver for global risk sentiment and capital flows.
Counterpoint
If hiring remains sluggish, the economy could stall, leading to a pullback in equities despite the headline‑positive job numbers.
Key entities
- ETFSPDR S&P 500 ETF Trust
Tracks the S&P 500 index; its price reacts to broad macro data.
