Job openings cool more than expected in August: JOLTS report

U.S. employers posted fewer job openings in August, with the total falling to 7.08 million from a revised 7.34 million in July, according to the Labor Department. This number was below the 7.2 million that economists had predicted. The Job Openings and Labor Turnover Survey (JOLTS) revealed that layoffs decreased and the number of individuals quitting their jobs remained steady in August, indicating a resilient labor market despite rising energy costs resulting from the conflict with Iran.

Despite the reduction in job openings, the U.S. labor market remains robust, with employers adding an average of 80,000 jobs monthly throughout the year, a significant improvement from the 9,700-a-month average in 2024 when high interest rates and uncertainty about President Trump's trade policies discouraged hiring. The next jobs report, scheduled for release on Friday, is anticipated to show that the U.S. added 95,000 jobs in September, a modest increase from the surprising 162,000 jobs added in August last month.

The unemployment rate is projected to remain low at 4.1%, as most American workers enjoy a higher level of job security, according to a forecasters' survey by data firm FactSet. While employers may not be shedding workers, they are not hiring at the same pace as before. The current hiring rate is still well below the 166,000 monthly jobs created on average in 2023 and 2024, and the 491,000 jobs monthly during the 2021-2022 hiring boom that followed the COVID-19 lockdowns.