US job openings dip in June as labour market shows signs of gradual cooling
&imwidth=600&imheight=450&format=webp&quality=medium "US job openings dip in June as labour market shows signs of gradual cooling")
Signage for a job fair is seen on 5th Avenue after the release of the jobs report in Manhattan, New York City, US. Photograph: (Reuters)
According to the JOLTS released on July 27, job openings fell by 275,000 to 7.44 million, in line with economists’ expectations. The drop comes after two months of gains and suggests demand for workers is moderating amid broader economic uncertainty.
The US labour market showed further signs of cooling in June as job openings and hiring activity declined, particularly in sectors that had previously driven growth. According to the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) released on July 27, job openings fell by 275,000 to 7.44 million, in line with economists’ expectations. The drop comes after two months of gains and suggests demand for workers is moderating amid broader economic uncertainty. Hiring also edged down, slipping by 261,000 to 5.2 million. The decline was especially steep in the accommodation and food services sector, where job openings fell by 308,000 and hiring decreased by 106,000. This industry, once a post-pandemic employment engine, has cooled as businesses hesitate to expand amid concerns about trade policy and consumer demand.
Quits stable, layoffs still low
Despite the dip in openings and hires, the labour market hasn’t seen a corresponding rise in layoffs. Layoffs and discharges were virtually unchanged at 1.6 million, indicating that employers are reluctant to part with workers after years of labour shortages. Quits, often a signal of worker confidence, also held steady at 3.1 million.
Job openings also declined in health care and social assistance (-244,000) and finance and insurance (-142,000), while increasing in retail trade (+190,000), information (+67,000), and state and local government education (+61,000). Separations in total, including quits, layoffs, and retirements, were little changed at 5.1 million. The quits rate, often viewed as a measure of employee confidence in the job market, remained at 2.0 per cent.
Fed eyes labour trends amid tariff uncertainty
The JOLTS report precedes the closely watched July employment report to be released on August 1, which is expected to show continued moderation in job growth. Economists predict that nonfarm payrolls will rise by 102,000, down from June’s 147,000, with the unemployment rate ticking up to 4.2 per cent.
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The Federal Reserve, concluding its two-day policy meeting on July 30, is widely expected to hold interest rates steady at 4.25-04.50 per cent, despite pressure from US President Donald Trump to lower borrowing costs. Chair Jerome Powell has described the labour market as “solid,” but policymakers are closely monitoring signs of weakening, particularly as tariff uncertainty weighs on hiring decisions.