US July JOLT job openings, with large downward revision for June, highlight labor market weakness
Macro
The July JOLT job openings released by the US Bureau of Labor Statistics came in at 7.271 million, up from June's 7.182 million, but below market expectations. June's figure was revised down by about 200,000, from 7.359 million to 7.182 million, marking the largest downward revision since 2025. The quits rate fell to 1.9% from 2.0%, the lowest since April, reflecting weakened worker confidence in the labor market. Hires also decreased by 278,000 to 5.954 million, the lowest since February. The ratio of job openings to unemployed persons was 1.05, slightly improving from June's 1.01, but still below pre-pandemic levels. On the surface, July's job openings suggest a healthy labor market, but in reality, they are due to the large downward revision for June, and the underlying details are not encouraging. The August employment report also points to a risk of two consecutive months of job losses, warranting close attention.
