US job openings slipped in July to the lowest level in 10 months, showed Labor Department data on Wednesday.
According to Bureau of Labor Statistics data available positions fell to 7.18 million from a downwardly revised 7.36 million in June.
The decline in job openings was driven by health care, retail trade and leisure and hospitality sectors.
Vacancies in health care sector dropped to the lowest level since 2021.
Health care and social assistance companies cut openings by 1,81,000 and retailers by 1,10,000.
The fall in vacancies indicate companies are becoming more cautious and selective with their hiring as they attempt to gauge the impact of President Donald Trump’s trade policy on the economy.
Fed policymakers monitoring labor market
US Federal Reserve policymakers are closely monitoring labor market updates for any signs of weakness.
The latest job openings data boosted hopes for a Federal Reserve interest rate cut later this month.
Last month, Fed Chair Jerome Powell had said that “downside risks to employment are rising.”
The Fed has kept its benchmark overnight interest rate in the 4.25%-4.50% range since December.
Layoffs Rise
The Job Openings and Labour Turnover Survey (JOLTS) showed that layoffs rose slightly. The number of Americans quitting their jobs — a sign of confidence in their ability to find better pay, opportunities or working conditions elsewhere — was unchanged from June at 3.2 million.
Jobs openings remain at healthy levels but have fallen steadily since peaking at a record 12.1 million in March 2022 as the US economy roared back from COVID-19 lockdowns.
On Friday, the Labour Department will release unemployment and hiring numbers for August.
Worse than the lackluster July hiring figures were Labour Department revisions that slashed a stunning 2,58,000 jobs off May and June payrolls.
So far this year, the US economy has been generating 85,000 jobs a month, down from 1,68,000 last year and an average 4,00,000 a month during the hiring boom of 2021-2023.
After the data, the US stock indices were mixed. At 10:06 AM ET, the Dow Jones Industrial Average fell 203.83 points, or 0.45%, to 45,091.98, the S&P 500 gained 21.34 points, or 0.33%, to 6,436.88 and the Nasdaq Composite gained 208.40 points, or 0.98%, to 21,488.03.
In the bond market, the 10-year Treasury yield fell to 4.22% from 4.28% late on Tuesday.