Job openings eased slightly in June but remained near the highest levels of the past year and a half, reinforcing the view that the U.S. labor market continues to hold up despite elevated interest rates.
Why it matters: The labor market remains one of the Federal Reserve’s biggest reasons for keeping interest rates elevated, and June’s report is unlikely to change that outlook.
- The Bureau of Labor Statistics reported that job openings totaled 7.359 million on the last business day of June, down from 7.54 million in May.
- While openings declined modestly, June still marked the third-strongest month of the past 18 months.
Hiring demand strengthened in several industries, including transportation, warehousing and utilities, which added 97,000 openings, and the federal government, where openings increased by 39,000.
- Offsetting those gains were declines in wholesale trade, nondurable goods manufacturing and mining and logging.
Separations: Worker turnover also picked up. Total separations, which include quits, layoffs and discharges, rose to 5.35 million from 5.26 million in May, the highest level since March.
- Quits, a closely watched measure of worker confidence, rose to 3.23 million from 3.15 million, also reaching their highest level since March and suggesting employees remain willing to leave their jobs for new opportunities.
Impact on Mortgage Rates: While job openings slipped modestly in June, they remain elevated by recent standards. Combined with rising quits, the report points to a labor market that is cooling only gradually and is unlikely to have much impact on mortgage rates or expectations for Federal Reserve policy.