The U.S. labor market showed another sign of cooling in August, with job openings falling to 7.08 million from 7.33 million in July. That was the lowest level since March and well below economists’ expectations for 7.23 million openings.
Why it matters: Job openings provide a measure of businesses’ appetite for workers. A decline doesn’t necessarily mean companies are laying people off, but it does suggest employers are becoming less aggressive about hiring.
- The slowdown was broad rather than concentrated, with the Labor Department reporting little change in openings across individual industries.
Workers are staying put: Quits fell to 3.06 million from 3.089 million in July, the lowest level in four months. The quits number is particularly important because workers are generally more willing to voluntarily leave a job when they’re confident another opportunity is waiting.
- Total separations—which include quits, layoffs, discharges and other departures—also declined to 5.07 million from 5.12 million, the lowest since April.
The big picture: The report points to a labor market that is cooling primarily through weaker hiring demand rather than a surge in job losses. Employers have fewer openings, workers are quitting less often and overall separations are declining.
The bottom line: This isn’t a labor market that’s falling apart, but it is one that’s losing some momentum. For the bond market, softer labor demand could provide some relief after a string of strong economic reports pushed yields higher. The key question now is whether Friday’s payroll report confirms that cooling trend.