US Job Openings Drop to 3.5-Year Low Amid Weaker Worker Demand

Job openings in the United States fell to their lowest level since January 2021, with 7.67 million positions available in July, according to the Bureau of Labor Statistics' Job Openings and Labor Turnover Survey. This represents a decrease of 237,000 from June's revised figure of 7.9 million. The reduction in job openings is seen as a sign of cooling demand for workers, despite ongoing growth in consumer spending.

The ratio of job openings to unemployed persons now stands at roughly 1.1, down from a peak of over 2 to 1 in early 2022. This trend has raised concerns about a potential slowdown in hiring, which could influence the Federal Reserve's decision on whether to cut its benchmark interest rate. While some economists anticipate a possible 50 basis point reduction, others suggest a more modest quarter-point cut might be more likely if hiring remains relatively stable. Additionally, the Labor Department reported a rise in layoffs, contributing to the overall sense of uncertainty in the labor market.