By Jeffry Bartash
New hires barely outpaced jobs losses in July
There seem to be a lot of job openings in the U.S. economy, but hiring patterns indicate it’s a lot harder to find a job now.
The number of job openings in the U.S. fell in July to the second lowest level since the pandemic and hiring patterns signaled the labor market has gotten weaker, a new survey shows.
Job postings dropped to 7.18 million million in July from 7.36 million in the prior month, the government said Wednesday. It was the lowest level since last fall and the second smallest reading since 2020.
Job openings are still higher compared to the last few months before the pandemic, but they have tumbled from a record 12.1 million in 2022.
Companies simply aren’t hiring as many people anymore as they grapple with ongoing uncertainty tied to higher U.S. tariffs.
The so-called hiring rate was unchanged at 3.3% in July and stood at the lowest level since 2013 if the pandemic era is excluded.
The silver lining? Layoffs also remain very low.
Companies are reluctant to shrink staff when sales and profits remain fairly strong and a persistent labor shortage would make it harder to fill open jobs when the time arises.
Big picture: The labor market has weakened considerably over the past year – and it’s not getting any better.
The government on Friday is expected to report another small increase in employment in August, boosting the odds of the Federal Reserve cutting interest rates at its next big meeting in two weeks.
Yet rate cuts alone are unlikely to rev up the economy.
Market reaction: The Dow Jones Industrial Average DJIA fell, and the S&P 500 SPX rose, in Wednesday trading.
-Jeffry Bartash
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09-03-25 1017ET
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