October Job Openings Plummet to 4-Year Low Amid Government Shutdown: What It Means for the Economy

Job Openings in October Fall to Lowest Level Since Early 2021, Indeed Data Reveals

Published November 4, 2025 – Updated An Hour Ago

Job openings in the United States dropped in October. They reached their lowest count since February 2021. This fall came as the country struggled with a government shutdown and a slowing economy. Data from the job search site Indeed shows the decline. The report fixes words close to each other, so readers follow the links fast.

Key Insights from Indeed’s Job Postings Index

The Job Postings Index from Indeed counts new job ads. It uses a baseline of 100 set in February 2020. As of October 24, the index showed a score of 101.9. The score tells us that:

The index went down by 0.5% from the start of October.
There is a roughly 3.5% drop since mid-August, based on the last data from the Bureau of Labor Statistics (BLS).

This fall in job ads shows that companies are hiring less while the shutdown grows.

Government Shutdown’s Impact on Labor Market Data

Usually, the BLS gives its monthly Job Openings and Labor Turnover Survey (JOLTS) report on Tuesdays. This report helps Federal Reserve officials and other planners view the job market. Now, since the shutdown stops the report, experts depend on other tools such as Indeed’s real-time data.

The latest JOLTS report from August 2025 stated:

Job openings reached 7.23 million; the count was the same as in July but was down 7% compared to January.

The drop in ads shows the same trend in both sets of numbers.

Salaries Also Reflect Labor Market Cooling

Data from Indeed shows slower wage growth in new ads:

Year-over-year wage rises slipped to 2.5% by August, down from 3.4% earlier in the year.

This shows that employers are holding back on raising pay. The slower wage rise hints at caution amid the current economic mood.

Federal Reserve Responds to Labor Market Developments

The weakening job market has led the Federal Reserve to act. At the last meeting of the Federal Open Market Committee (FOMC), members voted 10-2 to cut the main interest rate by 0.25 percentage points. This move set the new rate range at 3.75%-4%. The change shows how policy makers worry about the job market even if inflation remains above the 2% aim.

Fed Governor Lisa Cook said:

“Hiring is slowing. We see this from Indeed, from job postings. We’re looking at a range of numbers in real time. We are not waiting on the unemployment report. There is cause for worry because the unemployment rate edged up over the summer.”

Upcoming Labor Market Reports Delayed

The usual nonfarm payrolls report, which many watch closely, will not come out this week because of the shutdown. Economists polled by Dow Jones expected this report to show:

A loss of about 60,000 jobs in October.
An increase in the unemployment rate to 4.5%.

Without the official report, experts use other numbers like those from Indeed to judge the job scene.

Summary of Recent Labor Market Trends

Indeed Job Postings Index: Fell to 101.9 in late October, the lowest since February 2021.
Job Openings: Down roughly 7% from January, with 7.23 million openings reported in August (BLS data).
Salary Growth: New job ads show that wage increases slowed to 2.5% year-over-year by August.
Federal Reserve Action: The Fed cut interest rates as job market risks grew.
Data Gaps: Official jobs reports for October are delayed due to the government shutdown.

The government shutdown keeps the future uncertain. All who follow the economy, from planners to job seekers, watch these trends as more data comes in.

For ongoing updates on job trends and financial news, follow trusted sources and real-time job data sites like Indeed.

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