US job openings rise to 8.1 million despite higher interest rates

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US job openings rise to 8.1 million despite higher interest rates

2024-07-03 00:27 Last Updated At：00:30

WASHINGTON (AP) — U.S. job openings rose slightly to 8.1 million in May despite the impact of higher interest rates intended to cool the labor market.

Vacancies rose from a revised 7.9 million in April, the first reading below 8 million since February 2021, the Labor Department reported Tuesday. April openings were marked down from an originally reported 8.1 million.

Layoffs rose to 1.65 million in May from 1.54 million in April. The number of Americans quitting their jobs — a sign of confidence in their prospects — was basically unchanged.

“The report was another sign that the labor market is holding firm … The expansion looks solid,’’ said Robert Frick, economist at the Navy Federal Credit Union.

The U.S. economy and job market have been remarkably resilient in the face of the Federal Reserve's campaign to raise interest rates to rein in inflation. The Fed hiked its benchmark rate 11 times in 2022 and 2023, lifting it to a 23-year high.

Defying expectations of a recession, the U.S. economy kept growing and employers kept hiring.

But lately there have been signs the economy is losing some steam. Job openings have come steadily down since peaking at 12.2 million in March 2022. The job market is still strong. There are 1.25 jobs for every unemployed American, but that's down from a 2-to-1 ratio in January 2023.

Fed policymakers welcome lower job openings — a relatively painless way to cool a hot job market and reduce pressure on companies to raise wages, which can feed inflation.

From January through March this year, the economy grew at an annual pace of just 1.4%, slowest since spring 2022. Consumer spending, which accounts for around 70% of U.S. economic activity, e xpanded just 1.5% after advancing at a pace of more than 3% in each of the last two quarters of 2023.

The Labor Department is expected to report Friday that employers added 190,000 jobs last month, down from 272,000 in May, according to a survey of forecasters by the data firm FactSet. Unemployment is forecast to stay low at 4%.

High interest rates have helped bring inflation down closer to the Fed's target of 2% a year from a four-decade high 9.1% in June 2022. Progress on containing price increases is expected to allow the central bank to start cutting rates. Wall Street investors are expecting the first rate cut at the Fed's September meeting.

Speaking at a conference in Portugal Tuesday, Fed Chair Jerome Powell said that progress toward lower inflation appears to have resumed after stalling earlier this year. But he said the Fed needed to see more evidence before it cuts rates.

AP Business Writer Matt Ott contributed to this story.

Patrick Bertoletti of Chicago wins his first men’s title at annual Nathan’s hot dog eating contest.

2024-07-05 01:24 Last Updated At：01:30

NEW YORK (AP) — Patrick Bertoletti of Chicago gobbled down 58 hot dogs to win his first men’s title Thursday at the annual Nathan’s Famous Fourth of July hot dog eating contest.

Bertoletti won in a tight, 10-minute race where the leader bounced back and forth. The 39-year-old Bertoletti defeated 13 competitors from around the world in a test to see who can wolf down the most hot dogs in 10 minutes.

“I wasn’t going to stop eating until the job was done,” Bertoletti said.

Bertoletti bested his prior record of 55 hot dogs at the event, held every Independence Day on New York's Coney Island.

The reigning men’s champion, Joey “Jaws” Chestnut, didn’t attend the competition this year over a sponsorship tiff. Instead, Chestnut will compete against soldiers at a U.S. Army base in El Paso later in the day. Chestnut won 16 out of 17 previous competitions.

Earlier Thursday, defending champion Miki Sudo of Florida won her 10th title in the women’s division.

Sudo consumed 51 hot dogs in 10 minutes — and set a new world record for women.

“I’m just happy to call this mine for another year," Sudo said after winning her 10th pink belt.

The 38-year-old dental hygiene student won last year after forcing down 39 1/2 hot dogs.

Sudo also defeated 13 competitors, including 28-year-old rival Mayoi Ebihara of Japan. Ebihara came in second after eating 37 hot dogs in 10 minutes. She was also the runner-up in 2023.

Bertoletti's victory marks the first time the famed mustard belt has gone to someone besides Chestnut since 2015.

Thousands of fans flock each year to the event held outside the original Nathan’s location in Brooklyn's Coney Island, a beachfront destination with amusement parks and a carnivalesque summer culture.

Competitors came from over a dozen states and five continents, with prospects from Brazil, Japan, the United Kingdom, South Korea, Australia and the Czech Republic vying for the coveted title and $10,000 prize money.

Last year Chestnut, of Indiana, chewed his way to the title by downing 62 dogs and buns in 10 minutes. The record, which he set in 2021, is 76.

Chestnut was initially disinvited from the event over a sponsorship deal with Impossible Foods, a company that specializes in plant-based meat substitutes.

Major League Eating, which organizes the Nathan’s Famous contest, has since said it walked back the ban, but Chestnut decided to spend the holiday with the troops anyway.

Chestnut said he wouldn’t return to the Coney Island contest without an apology.

The event at the Fort Bliss army base in El Paso, scheduled to begin at 5 p.m. ET, will use traditional franks, with Chestnut attempting to out-eat four soldiers in five minutes.

Even though he won't be eating their vegan products, Impossible Foods is promoting Chestnut's YouTube livestream of the exhibition by flying airplanes with banners over Los Angeles and Miami. The company will also donate to an organization supporting military families based on the number of hot dogs eaten at the event, a spokesperson said.