The number of job openings in the U.S. fell slightly to 8.18 million in June, down from 8.23 million in May, indicating a cooling labor market driven by high interest rates.
Although the figure was higher than expected, other signs of a slowing job market were evident, including a decrease in the number of people being hired and the lowest number of people quitting their jobs since November 2020.
The big picture: Conversely, layoffs dropped to 1.5 million, the lowest since November 2022, suggesting that employers are hesitant to release staff despite the changing economic landscape.
- Job vacancies increased in certain sectors such as hotels and restaurants, as well as in state and local governments, while openings declined in manufacturing and at the federal government level.
- Despite the Federal Reserve’s efforts to combat inflation by raising interest rates, the job market and the economy have shown resilience, with job openings peaking at 12.2 million and gradually decreasing since then, yet remaining at a strong 8.2 million.
- Analysts suggest that the cooling labor demand and job growth could alleviate pressure on companies to raise wages, assisting in controlling inflation.
