A report by the Bureau of Labor Statistics published on Wednesday shows that there were 7.67 million job openings in the U.S. in July. This is down from the 7.91 million revised figure from the month before and represents the lowest mark since January 2021.
The newest data continues the trend of weakening demand for workers that has been present in recent months. For comparison, there were 8.8 million jobs open in January of this year.
There were some positives in the report, namely an uptick in hiring. A total of 5.5 million hires were made in July compared to 5.2 million in June, which marked a four-year low.
On the other hand, July had seen the most layoffs since March 2023, with 1.76 million people being laid off compared to 1.56 million in the month prior.
The low number of job openings could be another sign of a softer labor market. If employment data for August, which is due to be released later in the week, ends up being unfavorable, a fear of recession is likely to become a hot topic again.
In this scenario, the Federal Reserve might turn to a more aggressive rate-cut policy than previously planned. The Fed officials are expected to make their first borrowing rate adjustment since July 2023 at their upcoming meeting in September.