For ads-free news, click here.
Job openings dropped in July to 7.67 million, the lowest since January 2021, signaling a cooling labor market.
According to the Bureau of Labor Statistics, this decline of over 1 million jobs from a year ago could influence the Federal Reserve to pursue a larger rate cut in its September meeting. Most economists predicted job openings would rise to 8.09 million, but they’ve been trending downward, indicating the job market is softening under the pressure of the Fed’s rate hikes.
“Half a million job openings evaporated overnight,” said Chris Rupkey, chief economist at FWDBONDS. “Many of these openings are not real, of course, and serve as window dressing and keep a company’s name out there in the public eye, but still, the loss of half a million jobs in one month is something that is starting to look recessionary. The labor market may be less stable than Fed officials believe.”
In July, 3.3 million workers quit their jobs, representing 2.1% of the workforce, a slight change from the previous month but down 338,000 from a year earlier. The “quits rate” reflects those who left for new jobs or are confident in finding employment. Layoffs and discharges remained steady at 1.8 million.
Job openings peaked at over 12 million in March 2022, when the Fed began raising interest rates, and have since dropped by 37%. Recent jobs data has sparked concerns that the Fed may have kept interest rates too high, risking job losses and reduced economic output. In July, the economy added 114,000 jobs, a slowdown from previous months, and the unemployment rate rose to 4.3%, according to the Bureau of Labor Statistics.
The Dennis Michael Lynch Podcast archive is available below. Never miss an episode. Subscribe to the show by downloading The DML News App or go to Apple Podcasts.
