The BLS’s newly released monthly Job Openings and Labor Turnover Survey (JOLTS) report shows that job openings fell to 7.35 million in July. This represents a slight dip from June’s record high of 7.36 million. That’s the lowest level of open jobs since last September.
Released by the Bureau of Labor Statistics (BLS), the Job Openings and Labor Turnover Survey is one of the most valuable datasets for understanding the employment ecosystem. Last week’s Employment Situation reflected an enormous decline in available jobs between June and July. Economists had actually forecasted no change for July, holding at 7.37 million, according to FactSet consensus estimates — so this drop is especially significant. What’s more, the job openings number for the prior month was revised down, suggesting further weaknesses in this tight labor market.
The continued drop in job openings certainly has a lot of people worried about the health of our economy. Fewer job opportunities can dent consumer confidence and spending—a key driver of economic growth. Firms are becoming more selective in their hiring. Analysts will be eager to watch data in the months ahead to get a fuller picture of what’s going on with employment.
The labor market has been a bit of a rollercoaster lately. This new data underscores that employers are probably still playing it safe with their hiring plans.
The BLS survey is one of the most important and timely indicators of US labor market dynamics. It’s essential for policymakers and economists to examine these trends to inform their decisions going forward. Yet job openings remain mired at recessionary levels. It remains to be seen how this troubling trend will affect displacement of workers and economic security.