U.S. job openings declined by 176,000 in July, falling to 7.181 million, according to the Labor Department’s JOLTS report, a sharper drop than the expected 7.378 million.
The big picture: Hiring rose modestly by 41,000 to 5.308 million in July, indicating only moderate improvement in labor demand.
- Layoffs increased slightly by 12,000, reaching 1.808 million, reflecting growing caution among employers.
- Recent employment gains have averaged only 35,000 jobs per month over the last three months, significantly down from 123,000 per month in the same period last year.
What we’re watching: The unemployment rate is forecasted to edge up to 4.3% in August from 4.2% in July, indicating slight weakening in the labor market.
- Federal Reserve Chair Jerome Powell has hinted at a possible interest rate cut during the upcoming September 16-17 Federal Open Market Committee meeting, acknowledging the risks in the labor market.
- Despite these concerns, the Fed maintains that inflation remains a key threat, keeping benchmark interest rates steady between 4.25% and 4.50% since December.
