US Job Openings, Hiring Drop Sharply in June

The U.S. labor market showed signs of cooling in June with job openings and hiring both declining, particularly in the accommodation and food services sector, which had previously driven employment growth. Job openings dropped by 275,000 to 7.437 million, below economists' expectations, while hiring fell by 261,000 to 5.204 million, the lowest in a year. Despite these declines, layoffs remained low, indicating employers are retaining workers amid labor shortages experienced during the pandemic recovery. The number of job openings still exceeds the number of unemployed workers, suggesting the labor market is not yet demand constrained and a labor recession has been averted for now. Economists expect July's employment report to show a slowdown in nonfarm payroll growth and a slight increase in the unemployment rate, while the Federal Reserve is likely to maintain interest rates steady despite pressure from President Donald Trump to lower borrowing costs. Consumer confidence has shown some improvement, although sentiment about job availability is beginning to deteriorate, reflecting uncertainty in the labor market.