JOLTS job openings climbed to record high of 5.8 million, while unemployment rate is hovering around 5.1% as per latest payroll report.
Unemployment rate reached has now reached to FED's long term target area around 5%, which makes FED much closer to rate hikes, which might come as early as next week.
Record job openings and slowdown in payroll gains reveals that there might be large skill mismatch in US labour market, which FED can't diminish even if it keeps rates at record. It is now up to the fiscal policymakers to design policies such that, it encourages more relevant education by people.
FED's quantitative easing support has reduced unemployment rate from 10% during crisis to close to 5% as of now and further reduction might be out of FED's reach as it might be due to cyclical factors.
FED hawks are likely to point this out in next week's two day FED meetings, whose outcome will come on Thursday at 18:00 GMT, followed by press conference from FED chair Janet Yellen.


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