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Key Takeways
- The U.S. economy had 7.2 million job openings in August, the same as in July, suggesting the economy remains in low-hiring, low-firing mode.
- While employers have avoided mass layoffs, it’s become difficult to break into the job market for those on the outside.
- Tuesday’s report could be the last official data on the job market for some time, since the federal government appears headed for a shutdown starting at midnight.
The number of job openings held steady in August as the job turnover stayed low. It could be the last data the Bureau of Labor Statistics will put out for some time given the potential for a government shutdown.
There were 7.2 million job openings in August, the same as in July, the Bureau of Labor Statistics said Tuesday. That beat the expectations of forecasters, who had expected them to decline to 7.1 million, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.
Only 5.1 million people were hired, down from 5.2 million in July and the fewest since June 2024. Layoffs and quitting both fell from July and remained at relatively low levels, suggesting workers remain reluctant to leave their positions and lack confidence about finding something better, while employers are similarly reluctant to let go of their existing workforces.
What This Says About the Health of the Labor Market
The job market is relatively stable for people who are already employed, and there is no sign of a severe rise in unemployment, suggesting the economy remains resilient despite disruptions from trade wars. However, hiring is stagnant, with few opportunities for job-seekers, so the risk of a downturn hasn’t gone away.
The report is the latest indication that the job market is settling into a low hiring, low-firing groove, after a sharp, unexpected slowdown in August hiring sparked fear that a wave of layoffs is on the way. But that may be cold comfort for job seekers facing a lack of prospects.
“Limited layoffs have been a reassuring constant in the face of mounting volatility elsewhere in the economy, and the relative stability for those workers that already have a job has helped keep spending steady,” Allison Shrivastava, economist at job hunting site Indeed, wrote in a commentary.
Possible Data Desert Ahead
Tuesday’s report could be the last data that policymakers, investors, and the general public get from the Bureau of Labor Statistics for some time. An impending government shutdown, set to begin at midnight in the absence of an unlikely deal between Republicans and Democrats in Washington, could delay the release of Friday’s highly anticipated report on job creation, as well as other BLS data depending on how long a shutdown lasts.
In the absence of data from the BLS, there will be few other data points that give a reading on labor in the U.S. Some experts expect weekly data on unemployment insurance claims, which is based on data from the states, to continue as it did during the 2013 shutdown. Private surveys of the job market, including from payroll firm ADP and consultancy Challenger, Gray, & Christmas, should also carry on, though economists consider these less reliable than the official statistics from the BLS.
The delay of jobs data will leave officials at the Federal Reserve flying blind in October when they meet to decide whether to lower the central bank’s key interest rate, after cutting a quarter point in September. The Fed relies on data from the BLS to determine whether the labor market is in distress and needs steep rate cuts, or whether rates should stay higher to fight inflation.
