Federal data released Wednesday show U.S. job openings fell to about 7.18 million in July, marking a rare decline to levels not seen since the pandemic-era disruptions and the lowest reading since September 2024.
Key Takeaways
- July job openings measured roughly 7.18 million, per the Bureau of Labor Statistics (BLS).
- The July reading is only the second time openings fell below 7.2 million since the end of 2020.
- Economists polled by Dow Jones had expected about 7.4 million openings, so the figure missed forecasts.
- July’s total was the lowest since September 2024, when just over 7.1 million openings were reported.
- Analysts say the drop adds to signs of a cooling labor market after months of mixed signals.
- Weekly jobless claims (due Thursday) and the monthly jobs report (due Friday) are the next data points to watch.
Verified Facts
The Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS) reported roughly 7.18 million open positions in July. That result is below the 7.4 million median estimate compiled by Dow Jones and is the second reading under 7.2 million since 2020.
July’s 7.18 million is the weakest headline JOLTS number since September 2024, when the report showed just over 7.1 million openings. Outside of that September drop, readings at this level were last common during the peak pandemic disruptions to the U.S. labor market.
JOLTS measures the number of open positions employers report, not adjusted for seasonality in the same way as some other labor indicators. The series is often used alongside payroll, unemployment, and claims data to assess hiring demand.
Context & Impact
Falling openings can signal easing demand for labor, which may eventually slow hiring and wage growth. Markets and policymakers watch JOLTS for signs that the job market is losing momentum after a prolonged tight phase.
For employers, fewer openings may reflect a slowdown in new hiring plans or a shift toward filling existing vacancies more slowly. For job seekers, it can mean slightly fewer advertised opportunities in the near term.
Policymakers, including the Federal Reserve, consider a range of labor indicators when assessing inflationary pressures. A sustained decline in openings could weigh on wage growth and influence monetary decisions over coming months.
“This is a turning point for the labor market… it’s yet another crack,”
Heather Long, Chief Economist, Navy Federal Credit Union
Unconfirmed
- Anecdotal reports of a “frozen” job market describe difficulty finding jobs for some workers; these reports are qualitative and not fully captured by JOLTS.
- How long this lower level of openings will persist and whether it marks a durable trend remain uncertain pending upcoming claims and payroll data.
Bottom Line
July’s JOLTS release, showing about 7.18 million openings, adds evidence of cooling in U.S. labor demand after a period of tight conditions. Investors and economists will look to weekly unemployment claims and Friday’s monthly jobs report for confirmation of any sustained slowdown.