Job openings increased slightly in July, according to the Bureau of Labor Statistics, but other parts of the report suggest workers may be growing less confident about the labor market.
Why it matters: Job openings rose to 7.27 million in July, up from 7.18 million in June and the third-highest level of the past 12 months, suggesting employers still have a healthy appetite for workers.
- Manufacturing led the increase with 79,000 additional openings, including a 76,000 increase in durable goods manufacturing. Health care added another 54,000 openings.
- Those gains were partially offset by transportation, warehousing and utilities, where openings fell by 67,000. Professional and business services declined by 65,000, while leisure and hospitality dropped by 42,000.
Breaking it Down: There were some signs of caution elsewhere in the report. Total separations, which include quits, layoffs, discharges and other separations, fell to 5.07 million from 5.34 million, the second-lowest level in five months.
- More importantly, quits fell to 3.06 million from 3.21 million, also the second-lowest level in five months. Because workers are generally more willing to voluntarily leave their jobs when they are confident about finding another one, declining quits can be a sign that employees are becoming more cautious.
The bottom line: Employers are still looking for workers, with job openings near the upper end of their range over the past year. But fewer workers are willing to quit, suggesting confidence in the labor market may not be quite as strong as the headline number implies.