US job openings fall to 3.5-year low
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The news: The US Bureau of Labour Statistics said job openings dropped to a 3.5-year low in July, falling to a lower than expected 7.673 million from a revised 7.910 million in June and signalling a labour market slowdown.
The numbers: Economists polled by Reuters had expected 8.100 million job openings.
The JOLTS report also showed layoffs rose to 1.762 million, the highest since March 2023, and the quits rate edged up to 2.1%. Job hires increased slightly to 5.521 million.
The context: The new data coincides with recent data showing the labour market is softening amid a slowdown in activity, reviving fears of a potential recession.
It also fuelled speculation about the size of the Federal Reserve's rate cut at its September meeting, as traders raised bets on a steep cut and Treasury yields fell.
What they said: “With layoffs and unemployment increasing amid a decline in job openings, the balance of labor supply and demand is shifting to show more pronounced weakness in the labor market,” Stuart Paul, an economist for Bloomberg said.
“Ultimately, that should allow underlying wage and inflation pressures to wane.”
The sources: Bureau of Labor Statistics , Bloomberg
