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America’s employers posted fewer job openings in July than the previous month, a sign that hiring could further 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 rose from 1.56 million to 1.76 million, the most since March 2023, though that level of job cuts is roughly consistent with prepandemic levels, when the unemployment rate was historically low. Layoffs have been unusually low since the economy’s rapid recovery from the pandemic recession, with many employers intent on holding 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 falling 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. The spike in quits at that time helped drive up wage gains as companies jacked up pay to try to find or keep employees. The current lower level of quits suggests that wage increases will likely remain modest, which should help further cool inflation.
