WASHINGTON (Diya TV) — For the first time in more than four years, there are fewer job openings than job seekers in the United States. The latest government data shows that employers had 7.18 million open positions at the end of July, compared with 7.2 million people actively looking for work.
The Bureau of Labor Statistics reported Wednesday that job openings dropped from a revised 7.36 million in June to 7.18 million in July. Economists had expected openings to dip only slightly, to 7.37 million. Instead, the drop placed openings at their lowest level in 10 months and below the number of unemployed workers for the first time since April 2021.
“This is a turning point for the labor market,” said Heather Long, chief economist at Navy Federal Credit Union. “It’s yet another crack.”
The July data highlights a labor market losing momentum after years of growth. Employment gains in July were so weak that President Donald Trump dismissed the head of the bureau that compiles the reports, claiming without evidence that the figures were rigged.
The Job Openings and Labor Turnover Survey, known as JOLTS, provides insight into hiring, quits, and separations. It comes from a separate survey from the monthly jobs report, but still offers a useful view of trends.
Dan North, senior economist for North America at Allianz Trade, said the JOLTS report will help frame expectations for Friday’s August jobs report. “Certainly, I think the employment report on Friday is the more important number,” North told CNN. “We expect this month to be light again, similar to what we had last month.”
Economists forecast job gains of about 80,000 in August, with the unemployment rate holding steady at 4.2%.
The July JOLTS report shows that hiring has slowed to a crawl. Workers are not changing jobs, and layoffs remain low. This lack of turnover suggests the labor market has grown stale.
“Labor market churn matters because it can help drive up wages, create more opportunities for workers, and support innovation,” said Allison Shrivastava, an economist at Indeed. “For the past few months, the opposite has largely held true.”
The report also reveals that the market is relying on only a few industries for growth. Health care remains the strongest driver, followed by leisure and hospitality. Yet even those sectors are showing signs of slowing.
Job openings fell the most in health care and social assistance in July. Leisure and hospitality also saw a decline. At the same time, openings increased in wholesale trade, construction, and the federal government.
Some federal agencies are boosting hiring, especially in areas like immigration enforcement, while others continue to recover from staffing cuts made during the Trump administration.
Hiring remained flat across most industries, including health care and government. The largest gains came in wholesale trade and “other services,” a category that covers jobs such as repair, maintenance, and pet care.
The latest JOLTS report adds to signs that the U.S. job market is cooling after a strong recovery from the pandemic. Economists warn that sluggish hiring and fewer openings could weigh on wage growth and limit opportunities for job seekers.
Friday’s August jobs report will offer a clearer picture of where the labor market is heading. If job gains remain weak, pressure could build on policymakers and employers to find ways to spark stronger growth.
For now, the numbers suggest that the once-hot labor market is showing its age. The balance has shifted, and workers looking for opportunities may find fewer doors open than in recent years.
