Key facts
- U.S. job openings rose to 7.271 million in July, up from a revised 7.182 million in June.
- Manufacturing vacancies saw a significant increase, particularly in durable goods industries.
- Hiring decreased by 278,000 to 5.054 million in July, led by a decline in professional and business services.
- Layoffs and discharges fell to 1.666 million, contributing to the labor market's stability.
- Economists had forecast 7.300 million unfilled positions for July.
U.S. job openings rose to 7.271 million in July, exceeding economists' expectations, driven by a surge in manufacturing vacancies. This increase occurred despite a downward revision for June's data, which was adjusted to 7.182 million unfilled positions. The labor market is generally viewed as stable, with historically low layoffs contributing to employment gains this year.
However, hiring declined significantly in July, falling by 278,000 to 5.054 million, primarily in the professional and business services sector. This slowdown suggests the labor market may be entering a holding pattern. The overall job openings rate edged up to 4.4% from 4.3% in June, while the hires rate fell to 3.2% from 3.4%.
Economists caution that the JOLTS report's response rate has decreased significantly since before the COVID-19 pandemic, potentially affecting its reliability in gauging labor market health. Meanwhile, financial markets are pricing in a roughly 66% chance of a 25 basis point interest rate hike by the Federal Reserve at its September meeting, as policymakers remain focused on bringing inflation down to the 2% target.