U.S. job openings dropped to a 10-month low in July, signaling a softer labor market and fueling expectations that the Federal Reserve will cut interest rates this month. For the first time since the pandemic, there were more unemployed workers than available positions, according to the Labor Department’s JOLTS report released Wednesday.
Openings declined by 176,000 to 7.18 million, the lowest since September 2024 and below economists’ forecasts of 7.37 million. The ratio of job openings to unemployed workers slipped to 0.99, down from 1.05 in June, marking the first time below parity since April 2021. Hiring rose modestly to 5.31 million, while layoffs stayed low at 1.81 million, underscoring resilience in the labor market despite slowing momentum.
Much of the decline came from healthcare, retail, and leisure-related industries, while construction, manufacturing, and government vacancies ticked higher. Fewer people are quitting jobs, with the quits rate holding at 2.0% for a fourth month, reflecting reduced worker confidence and moderating wage growth.
Economists point to Trump-era tariffs and immigration restrictions as contributing factors to labor market strain, while the Fed’s Beige Book noted businesses are cautious about hiring amid weaker demand. Fed Chair Jerome Powell has already signaled that policymakers are weighing a rate cut at the September 16–17 meeting, with upcoming payroll and inflation data likely to guide the decision.
