Openings Slip Below Expectations
Job openings in the U.S. dropped in July to 7.18 million, according to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS). The figure marks one of the lowest readings since the Covid-19 pandemic disrupted the labor market, falling short of economists’ expectations of 7.4 million.
The last time job openings were this scarce was in September 2024, when they briefly dipped to just above 7.1 million. Before that, such levels were last seen during the economic turmoil of 2020.
Signs of a Cooling Labor Market
The drop highlights a growing sense that the U.S. labor market is losing steam after years of strong demand for workers. Economists warn that reduced openings could indicate businesses are scaling back hiring amid economic uncertainty, tariffs, and elevated borrowing costs.
“This is a turning point for the labor market,” said Heather Long, chief economist at Navy Federal Credit Union. “It’s yet another crack.” She added that job seekers are increasingly finding it difficult to secure new roles, reflecting what she called a “frozen” market.
What’s Next for Workers and Employers
The JOLTS data adds to a string of signals suggesting slowing momentum in employment. While layoffs have remained relatively low, the decline in postings suggests fewer opportunities for job seekers, particularly in industries sensitive to consumer spending and global trade.
Attention now shifts to the weekly jobless claims data due Thursday and the August jobs report on Friday. Both will provide additional clarity on whether the decline in job openings is a temporary slowdown or the beginning of a more prolonged contraction in the labor market.