Job openings fell to their lowest level in three years in July, according to the latest data from the Bureau of Labor Statistics (BLS), signaling a potential slowdown in the U.S. labor market.
- The total number of job openings dropped to 7.67 million by the end of July, a significant decrease from 7.91 million in June.
- This marks the lowest level of available jobs since January 2021, when the economy was still recovering from the impact of the COVID-19 pandemic.
Breaking It Down: Health care and social assistance saw the largest drop, with 187,000 fewer openings. State and local governments, excluding education, also experienced a reduction, losing 101,000 available positions. Additionally, the transportation, warehousing, and utilities sector faced a decline, with 88,000 fewer job opportunities.
- On the flip side, the professional and business services sector added 178,000 job openings in July, reflecting ongoing demand in that industry. The federal government also saw a modest increase, with 28,000 more positions available.
Quits: Interestingly, while job openings decreased, the number of workers voluntarily quitting their jobs rose in July. Quits climbed to 3.28 million, up from June’s 3.14 million, which had been the lowest level since 2020. This increase suggests that despite fewer job openings, workers remain confident in their ability to find new opportunities, continuing to switch jobs at a high rate.
Bottom Line: The contrasting trends between declining job openings and rising quits highlight a mixed picture of the labor market. On one hand, fewer jobs are being posted, potentially signaling a cooling economy. On the other hand, the rise in quits reflects worker confidence and mobility. However, quits remain near four-year low which points to continued softening in the labor market.
