The U.S. Labor Department reported on Tuesday that there were 7.4 million job openings in June, a slight decline from May’s revised 7.7 million. The dip suggests that the American labor market is continuing to show signs of gradual cooling as uncertainty sparked by inflation and global trade wars clouds the horizon.
According to the Bureau of Labor Statistics’ latest Job Openings and Labor Turnover Survey (JOLTS), hiring and separations both held steady, with little change at 5.2 million and 5.1 million, respectively. These figures indicate that while fewer new positions are opening, many businesses are maintaining their current workforce.
Separations include quits, layoffs, discharges, and other forms of separation such as retirement, death, and disability. The number of quits—a key indicator of worker confidence—remained marginally unchanged at 3.1 million, or a 2% rate. A stable quit rate can signal that workers feel less optimistic about finding better opportunities elsewhere.
Employers are also holding onto their existing talent. Layoffs and discharges remain unchanged at 1.6 million, or a 1% rate, and remain below pre-pandemic levels. This stability points to a cautious, yet steady, hiring environment.
The Labor Department will release July’s unemployment data on Friday. However, analysts predict that the joblessness rate will experience a slight uptick to 4.2% from June’s 4.1%. Despite the marginal increase, this level is still incredibly low by historical standards.
On average, the U.S. economy has added 130,000 jobs per month this year, down from 168,000 in 2023 and well below the post-pandemic average of 400,000 between 2021 and 2023.
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