WASHINGTON (AP) — U.S. job openings remained nearly flat in August, reflecting ongoing hesitancy among employers amid economic instability tied to trade policy shifts and the looming possibility of a federal government shutdown. The Labor Department revealed that openings edged up slightly to 7.23 million from 7.21 million the prior month, surpassing expectations of a decline to 7.1 million. n nThe latest Job Openings and Labor Turnover Survey (JOLTS) indicated a reduction in layoffs, yet also showed a drop in voluntary resignations—a trend often interpreted as weakening worker confidence in securing better employment. The hiring rate recorded last month was the lowest since June 2024, signaling continued softness in labor market dynamics. n nAlthough the number of available positions remains robust compared to historical averages, it has declined significantly from the peak of 12.1 million reached in March 2022, when the economy rebounded sharply following pandemic-related closures. n nThis year, labor market momentum has waned, influenced by the cumulative impact of 11 interest rate increases implemented by the Federal Reserve in 2022 and 2023 to combat inflation, as well as uncertainty stemming from trade tensions under former President Donald Trump’s administration. These factors have made businesses cautious about expanding payrolls. n nThe overall picture suggests a labor market in transition: those currently employed face relatively low risk of job loss, and the unemployment rate holds at 4.3%. However, individuals seeking new opportunities continue to encounter challenges in securing employment. n nCarl Weinberg, chief economist at High Frequency Economics, observed that companies are retaining staff despite economic headwinds, noting that only a significant downturn would likely prompt widespread workforce reductions. n nRecent revisions by the Labor Department indicated that job growth over the 12 months ending in March was overstated by 911,000. Instead of the initially reported 147,000 jobs added monthly, the revised figure stands at fewer than 71,000. Since March, the pace has slowed further, averaging just 53,000 new jobs per month. n nThe upcoming September employment report, scheduled for release Friday, may offer updated insights—though its publication could be delayed if a congressional budget standoff triggers a government shutdown. Economists surveyed by FactSet anticipate a modest gain of 50,000 jobs, up from August’s 22,000 but still indicative of sluggish growth. n nAt their most recent meeting, Federal Reserve officials cut the benchmark interest rate for the first time this year to bolster the weakening labor sector. Projections suggest two additional rate reductions before year-end. n
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U.S. job openings in August were essentially unchanged amid economic uncertainty
WASHINGTON (AP) — U.S. job openings were essentially unchanged last month amid economic uncertainty arising from President Donald Trump’s trade policies and an impending government shutdown. n nThe Labor Department reported Tuesday that job openings blipped up to 7.23 million from 7.21 million in July. Economists had forecast a drop to 7.1 million. n nREAD MORE: Fed’s favored inflation gauge accelerated slightly in August, report shows n nThe Job Openings and Labor Turnover Survey (JOLTS) showed that layoffs fell month. But so did the number of people quitting their jobs — which is a sign of confidence in their prospects of finding a better job. The report’s measure of hiring last month was the weakest since June 2024. n nJob openings remain at healthy levels but have fallen steadily since peaking at a record 12.1 million in March 2022 as the U.S. economy roared back from COVID-19 lockdowns. n nThe U.S. job market has lost momentum this year, partly because of the lingering effects of 11 interest rate hikes by the inflation fighters at the Federal Reserve in 2022 and 2023 and partly because Trump’s trade wars have created uncertainty that is paralyzing managers trying to make hiring decisions. n nAltogether, Tuesday’s JOLTS numbers suggest that the job market remains in an awkward place: Americans who have jobs are mostly safe from layoffs. Unemployment remains low at 4.3%. But jobseekers are struggling to find work. n n“Companies are clearly hoarding workers with the economy still at full employment,” Carl Weinberg, chief economist at High Frequency Economics, wrote in a commentary. “It will take a bigger blow than what we have seen so far to convince companies that it is safe and prudent — and necessary — to lay off workers.” n nLabor Department revisions earlier this month showed that the economy created 911,000 fewer jobs than originally reported in the year that ended in March. That meant that employers added an average of fewer than 71,000 new jobs a month over that period, not the 147,000 first reported. Since March, job creation has slowed even more — to an average 53,000 a month. n nOn Friday, the Labor Department is expected release numbers on September hiring and unemployment — though the report could be postponed if a budget impasse in Congress leads to a government shutdown Wednesday. n nIf the report comes out, it is expected to show that employers added 50,000 jobs in September, unimpressive but up from a meager 22,000 in August, according to a survey of economists by the data firm FactSet. n nAt their last meeting two weeks ago, Fed policymakers cut their benchmark interest rates for the first time this year to support the sputtering job market. They also signaled that expect two more rate cuts this year. n nA free press is a cornerstone of a healthy democracy. n nSupport trusted journalism and civil dialogue.