US Job Openings Decline to 7.4 Million as Labor Market Slows

Job openings in the United States decreased to 7.4 million in June, according to the latest data from the Labor Department. This figure, down from 7.7 million in May, aligns with economists' expectations and signals a continued slowdown in the labor market.

The Job Openings and Labor Turnover Survey (JOLTS) indicated that layoffs were largely unchanged during the month. However, the number of workers voluntarily leaving their jobs—a measure often seen as a sign of confidence in finding new employment—fell to its lowest level since December. Hiring activity also declined compared to the previous month.

Commenting on the report, Glassdoor economist Daniel Zhao wrote on Bluesky that the data "shows softer figures with hires and quits rates still sluggish. Not dire, not amazing, more meh."

The labor market's momentum has slowed this year, influenced by the Federal Reserve's series of interest rate hikes in 2022 and 2023, as well as ongoing uncertainty related to trade policies. Upcoming Labor Department figures are expected to show a slight increase in the unemployment rate to 4.2% for July, with job gains projected to slow to 115,000, down from 147,000 in June, according to a FactSet survey of economists.

While June's overall hiring appeared stable, private sector payroll growth was limited to 74,000 jobs, the lowest since October. State and local government education jobs increased by nearly 64,000, a figure that economists believe may have been affected by seasonal factors. On average, the economy has added 130,000 jobs per month this year, a decrease from 168,000 last year and significantly below the average monthly gains seen during the post-pandemic recovery. Despite the slowdown in hiring, layoffs remain below pre-pandemic levels, indicating that employers are retaining their existing workforce.