Key facts
- U.S. job openings dropped to 7.359 million in June.
- Hiring increased by 96,000 to 5.348 million in June.
- Layoffs remained stable at 1.766 million.
- The healthcare and social assistance sector saw a significant decrease in job openings.
- Economists predict July nonfarm payrolls will rise by 80,000.
U.S. job openings declined in June, primarily due to a sharp decrease in the healthcare and social assistance sector, according to the Labor Department's Bureau of Labor Statistics. The total number of job openings fell by 178,000 to 7.359 million by the end of the month. Despite this drop, hiring saw an increase of 96,000 to 5.348 million, and layoffs remained low, suggesting continued labor market stability.
The job openings rate decreased to 4.4% from 4.5% in May, while the hires rate edged up to 3.4% from 3.3%. Layoffs and discharges were largely unchanged. Economists polled by Reuters had anticipated 7.400 million unfilled positions for June.
Some economists advise caution with the JOLTS report due to a decline in survey response rates. They characterize the labor market as being in a 'slow-hire, slow-fire' mode, which is seen as conducive to the Federal Reserve's focus on controlling inflation. The U.S. central bank recently maintained its benchmark interest rate between 3.50%-3.75%, with three policy members dissenting in favor of a rate hike.
Looking ahead, economists surveyed by Reuters estimate that nonfarm payrolls increased by 80,000 jobs in July, following a 57,000 rise in June. The unemployment rate is projected to hold steady at 4.2%, though there is a risk it could increase based on recent consumer sentiment surveys.