Current:Home > NewsUS job openings fall as demand for workers weakens-Angel Dreamer Wealth Society D1 Reviews & Insights
US job openings fall as demand for workers weakens
View Date:2024-12-23 18:40:01
WASHINGTON (AP) — America’s employers posted fewer job openings in July than they had the previous month, a sign that hiring could cool in the coming months.
The Labor Department reported Wednesday that there were 7.7 million open jobs in July, down from 7.9 million in June and the fewest since January 2021. Openings have fallen steadily this year, from nearly 8.8 million in January.
Layoffs also rose to 1.76 million, the most since March 2023, though that level of job cuts is roughly consistent with pre-pandemic levels, when the unemployment rate was historically low. Layoffs have been unusually low since the pandemic as many employers have sought to hold onto their workers.
Overall, Wednesday’s report painted a mixed picture of the job market. On the positive side, total hiring rose in July, to 5.5 million, after it had fallen to a four-year low of 5.2 million in June. And the number of people who quit their jobs ticked up slightly, to about 3.3 million. The number of quits is seen as a measure of the job market’s health: Workers typically quit when they already have a new job or when they’re confident they can find one.
Still, quits remain far below the peak of 4.5 million reached in 2022, when many workers shifted jobs as the economy accelerated out of the pandemic recession.
Wednesday’s figures indicate that fewer companies are seeking to add workers despite recent data showing that consumer spending is still growing. Last week, the government estimated that the economy expanded at a healthy 3% annual rate in the April-June quarter.
Even as openings have fallen for the past two years, there are still roughly 1.1 job openings for every unemployed person, Wednesday’s report showed. That reflects the economy’s continuing need for workers and marks a reversal from before the pandemic, when there were always more unemployed people than available jobs.
The July report on job openings is the first of several measures this week of the labor market’s health that the Federal Reserve will be watching closely. If clear evidence emerges that hiring is faltering, the Fed might decide at its next meeting Sept. 17-18 to start cutting its benchmark interest rate by a relatively aggressive half-percentage point. If hiring remains mostly solid, however, a more typical quarter-point rate cut would be likelier.
On Thursday, the government will report how many laid-off workers sought unemployment benefits last week. So far, most employers are largely holding onto their workers, rather than imposing layoffs, even though they have been slower to add jobs than they were earlier this year.
On Friday, the week’s highest-profile economic report — the monthly jobs data — will be released. The consensus estimate of economists is that employers added 163,000 jobs in August and that the unemployment rate ticked down from 4.3% to 4.2%.
Last month, the government reported that job gains slowed in July to just 114,000 — far fewer than expected and that the second-smallest total in 3 1/2 years — and the unemployment rate rose for a fourth straight month.
Those figures sparked fears that the economy was seriously weakening and contributed to a plunge in stock prices. Late last month, Fed Chair Jerome Powell underscored the central bank’s increasing focus on the job market, with inflations steadily fading.
In a speech at an annual economic symposium in Jackson Hole, Wyoming, Powell said that hiring has “cooled considerably” and that the Fed does not “seek or welcome further cooling” in the job market. Economists saw those comments as evidence that the Fed may accelerate its rate cuts if it decides it is needed to offset a slowdown in hiring.
veryGood! (1)
Related
- Lane Kiffin puts heat on CFP bracket after Ole Miss pounds Georgia. So, who's left out?
- Target's 2024 top toy list with LEGO, Barbie exclusives; many toys under $20
- The flood of ghost guns is slowing after regulation. It’s also being challenged in the Supreme Court
- Jennifer Aniston Addresses the Most Shocking Rumors About Herself—And Some Are True
- Stop smartphone distractions by creating a focus mode: Video tutorial
- Deadly Maui fire sparked from blaze believed to have been extinguished, report says
- Big game hunters face federal wildlife charges for expeditions that killed mountain lions
- Reid Airport expansion plans call for more passenger gates, could reduce delays
- ‘Emilia Pérez’ wouldn’t work without Karla Sofía Gascón. Now, she could make trans history
- Pauley Perrette of 'NCIS' fame says she won't return to acting. What's stopping her?
Ranking
- Brianna LaPaglia Addresses Zach Bryan's Deafening Silence After Emotional Abuse Allegations
- 'So many hollers': Appalachia's remote terrain slows recovery from Helene
- Comedian Jeff Wittek Says He Saw Live Sex at Sean Diddy Combs' Freak-Off Party
- Reid Airport expansion plans call for more passenger gates, could reduce delays
- Inspector general finds no fault in Park Police shooting of Virginia man in 2017
- Watch Layla the bat dog retrieve her last bat after 6 years of service
- Tina Knowles Details Protecting Beyoncé and Solange Knowles During Rise to Fame
- Will gas prices, supplies be affected by the port strike? What experts say
Recommendation
-
Video shows Starlink satellite that resembled fireball breaking up over the Southwest: Watch
-
What is the Google Doodle today? Popcorn kernels run around in Wednesday's Doodle
-
'Professional bottle poppers': Royals keep up wild ride from 106 losses to the ALDS
-
Eminem's Daughter Hailie Jade Is Pregnant, Expecting First Baby With Evan McClintock
-
Surfer Bethany Hamilton Makes Masked Singer Debut After 3-Year-Old Nephew’s Tragic Death
-
The Grammys’ voting body is more diverse, with 66% new members. What does it mean for the awards?
-
What is the Google Doodle today? Popcorn kernels run around in Wednesday's Doodle
-
Why Isn’t the IRA More of a Political Winner for Democrats?