Overview
- The Labor Department's JOLTS report on Tuesday showed job openings rose to 7.27 million in July from a revised 7.18 million in June, a modest increase in labor demand.
- Layoffs fell and the number of people quitting declined in July, which indicates lower worker turnover and more cautious job moves.
- Hiring activity stayed weak as total hires declined in July and employers have averaged about 61,000 net new jobs per month so far this year, an improvement from 2025 but still slow by historical standards.
- Forecasters surveyed by FactSet expect the August payrolls report to show roughly 65,000 jobs added and the unemployment rate edging up to about 4.2%.
- The JOLTS data have limits — response rates are lower than before the pandemic and monthly figures are often revised — and the combination of muted openings, higher interest rates and an energy squeeze tied to fighting with Iran could keep inflation and borrowing costs elevated for households.