Job openings across the United States fell in July to levels rarely seen since the height of the Covid-19 pandemic, stoking fears that the labor market is finally losing steam after years of resilience.
The Bureau of Labor Statistics reported Wednesday that available positions dropped to 7.18 million, missing Wall Street’s forecast of 7.4 million. The figure marks just the second time since 2020 that openings have dipped below 7.2 million, with the last such drop recorded in September 2024.
For many economists, this decline is more than a statistical blip—it’s another flashing warning sign.
“This is a turning point for the labor market,” said Heather Long, chief economist at Navy Federal Credit Union. “It’s yet another crack in the foundation.”
Long emphasized that the weakness has been building for months, with anecdotal reports already painting a picture of a market where job seekers are finding it harder to land positions.
The data adds to a growing narrative of a cooling economy, with job postings thinning even as employers remain cautious about cutting staff.
All eyes now turn to upcoming reports for further confirmation. Weekly jobless claims, due Thursday, will provide a near-term snapshot of layoffs, while Friday’s closely watched nonfarm payrolls report could set the tone for how the Federal Reserve weighs its next moves on interest rates.
For workers, the numbers may translate into longer job searches and fewer opportunities. For policymakers, they present a fresh dilemma: how to balance slowing inflation with the risk of pushing the labor market deeper into a slowdown.
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