Job Openings in the U.S. Fall Short of Expectations
The number of job openings in the United States decreased more than anticipated in July, with hiring remaining moderate, reflecting a softening labor market.
Job openings, an indicator of workforce demand, fell by 176,000 to 7.181 million by the end of July, according to the Bureau of Labor Statistics (BLS) report on Job Openings and Labor Turnover Survey (JOLTS).
Economists surveyed by Reuters had forecast 7.378 million job openings.
Hiring and Layoffs in July
Hiring increased by 41,000 positions to 5.308 million in July, while layoffs rose by 12,000 to 1.808 million.
Economists Attribute Slowdown to Trade Policies and Immigration
The labor market has slowed, with economists pointing to President Donald Trump’s broad tariffs as the cause. The available workforce has also decreased amidst the Trump administration’s immigration crackdown.
Job Growth and Unemployment Rate Projections
A Reuters survey of economists anticipates that the government’s employment report will likely show 75,000 jobs created in August following a 73,000 increase in July.
The average monthly job growth has been 35,000 positions over the past three months, down from 123,000 during the same period in 2024, according to government data.
The unemployment rate is expected to rise to 4.3% from July’s level of 4.2%.
Federal Reserve Considering Interest Rate Cuts
Federal Reserve Chair Jerome Powell hinted at a possible interest rate cut during the central bank’s policy meeting on September 16-17, acknowledging growing labor market risks. However, he also noted that inflation remains a threat.
The Fed has kept its target range for the federal funds rate at 4.25% to 4.50% since December.
Key Questions and Answers
- Q: What happened to job openings in July? A: Job openings fell by 176,000 to 7.181 million by the end of July.
- Q: How did hiring and layoffs perform in July? A: Hiring increased by 41,000 positions to 5.308 million, while layoffs rose by 12,000 to 1.808 million.
- Q: Why is the labor market slowing down? A: Economists attribute the slowdown to President Donald Trump’s tariffs and the administration’s immigration crackdown, which has reduced the available workforce.
- Q: What is projected for job growth and unemployment rate? A: The government’s employment report is expected to show 75,000 jobs created in August, with an unemployment rate rising to 4.3%.
- Q: What is the Federal Reserve’s stance on interest rates? A: The Fed is considering a possible interest rate cut due to growing labor market risks, while still acknowledging inflation as a threat.
