US July job openings rise by 89,000 to 7.27 million, led by manufacturing but hiring remains sluggish
Macro
According to the Labor Department's Job Openings and Labor Turnover Survey (JOLTS) released on the 1st, job openings increased by 89,000 from the previous month to 7.271 million. Although a surge in manufacturing job openings (up 79,000) led the increase, sluggish hiring suggests the labor market remains in a wait-and-see mode. Economists polled by Reuters had expected 7.3 million openings. June's figures were revised downward to 7.182 million from the initially reported 7.359 million. The job openings rate in July rose to 4.4% from 4.3% in the previous month. Hires decreased by 278,000 to 5.054 million, with a decline of 188,000 in professional and business services. The hiring rate fell to 3.2% from 3.4% in June. Layoffs and discharges decreased by 119,000 to 1.666 million. The layoff rate fell to 1.0% from 1.1% in the previous month. Layoffs remain at historically low levels. The labor market is generally seen as stable, which allows the Federal Reserve to focus on persistently high inflation, according to economists. However, the response rate for the JOLTS survey has fallen to just over 30% from about 58% before the pandemic, and some economists warn against placing too much weight on this statistic.
