US Job Openings Barely Budged in August at 7.2 Million

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US Job Openings Barely Budged in August at 7.2 Million/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. job openings remained virtually unchanged in August, holding at 7.2 million despite economic uncertainty tied to trade policies and a looming government shutdown. The Labor Department’s JOLTS report showed fewer layoffs but also fewer voluntary quits, reflecting a cautious workforce. Economists warn hiring momentum continues to weaken.

FILE – Help wanted sign is displayed at a live music and blues club in Chicago, Thursday, July 24, 2025. (AP Photo/Nam Y. Huh, File)

U.S. Job Openings Quick Looks

Job openings rose slightly to 7.23 million from 7.21 million in July.
Economists had expected a decline to about 7.1 million.
Layoffs fell, but quits also dropped, signaling waning worker confidence.
Openings peaked at 12.1 million in March 2022 during post-COVID rebound.
Trade wars and Fed rate hikes cited as major drags on hiring.
Revised data showed 911,000 fewer jobs created over the past year than previously reported.
Average job creation since March slowed to just 53,000 per month.
September jobs report may be delayed by potential government shutdown.
Economists expect 50,000 jobs added in September, unemployment steady at 4.3%.
Fed cut rates recently and signaled more cuts to support labor market.

Deep Look

Job Openings Stall in August

WASHINGTON — The U.S. job market showed little movement in August, with job openings inching up to 7.23 million from 7.21 million in July, according to the Labor Department’s latest Job Openings and Labor Turnover Survey (JOLTS). The modest uptick defied expectations, as economists had predicted a decline to around 7.1 million.

The numbers reveal a labor market that is still stable but losing steam compared to the extraordinary highs of the post-pandemic recovery. Job openings remain well above pre-pandemic averages but have fallen sharply from their March 2022 peak of 12.1 million.

Layoffs Down, Confidence Also Down

The August report contained mixed signals. On one hand, layoffs fell, suggesting employers are not yet rushing to downsize. On the other hand, the number of workers voluntarily quitting their jobs declined, a worrying indicator that fewer employees feel confident about finding better opportunities.

The “quit rate” has long been seen as a measure of worker confidence and bargaining power. A decline suggests employees are less willing to gamble on greener pastures amid growing uncertainty.

Hiring Headwinds: Trade and Interest Rates

Economists attribute the cooling job market to multiple forces. The lingering impact of 11 interest rate hikes in 2022 and 2023—designed to tame inflation—has slowed hiring. Meanwhile, President Donald Trump’s ongoing trade wars have added uncertainty for businesses. Managers, unsure of long-term costs, have become more cautious about expanding payrolls.

“The uncertainty from tariffs and trade disputes is forcing companies to delay major hiring decisions,” said one labor market analyst.

A Downward Revision

The Labor Department’s August revisions delivered another blow: the economy created 911,000 fewer jobs in the year ending March 2025 than originally reported. Instead of averaging 147,000 new jobs per month, employers added fewer than 71,000. Since March, hiring has weakened even further, dropping to just 53,000 jobs per month.

Such sluggish growth contrasts with the roaring rebound of 2021–22, when businesses scrambled to fill openings as the economy emerged from COVID-19 lockdowns.

September Jobs Report at Risk

All eyes now turn to Friday’s scheduled September employment report. Economists surveyed by FactSet expect employers added about 50,000 jobs, up from only 22,000 in August. The unemployment rate is expected to remain steady at 4.3%.

But there’s a catch: if Congress fails to avert a government shutdown by Wednesday, the Labor Department may delay the release of the jobs report. The Department of Labor has already said its Bureau of Labor Statistics would fully cease operations during a shutdown, halting one of the most closely watched indicators of U.S. economic health.

Federal Reserve Tries to Boost Market

Earlier this month, the Federal Reserve cut its benchmark interest rate for the first time in 2025, signaling that two more cuts may follow by year’s end. Policymakers hope looser credit will stimulate investment and ease pressure on the labor market.

Still, the Fed walks a tightrope: stronger-than-expected hiring could force it to slow rate cuts, while weaker numbers could fuel recession fears. Either outcome risks rattling Wall Street, which has surged in recent months on hopes of continued Fed support.

What It Means for Workers

For now, the labor market is still relatively healthy, with more job openings than unemployed workers. But the trend is clear: momentum has slowed, workers are more cautious, and businesses are reluctant to expand.

The coming weeks will be critical in determining whether the U.S. job market is simply cooling to a sustainable pace—or sliding toward deeper stagnation.