US job openings fell more than expected in July; hiring lacklustre

US job openings fell more than expected in July and hiring was moderate, consistent with easing labor market conditions. 

Job openings, a measure of labor demand, dropped 176,000 to 7.181 million by the last day of July, the Labor Department's Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey, or JOLTS report, on Wednesday. Economists polled by Reuters had forecast 7.378 million unfilled jobs. 

Hiring increased 41,000 to 5.308 million in July. Layoffs rose 12,000 to 1.808 million. The labor market has slowed, with economists blaming President Donald Trump's sweeping tariffs. 

Labor supply has also declined amid the Trump administration's immigration crackdown. 

A Reuters survey of economists expects the government's closely watched employment report on Friday will likely show nonfarm payrolls increased by 75,000 jobs in August after rising 73,000 in July. Employment gains averaged 35,000 jobs per month over the last three months compared to 123,000 during the same period in 2024, the government reported in August. 

The unemployment rate was forecast climbing to 4.3 per cent from 4.2 per cent in July. 

Federal Reserve Chair Jerome Powell last month signaled a possible rate cut at the U.S. central bank's September 16-17 policy meeting, acknowledging the rising labor market risks, but also added that inflation remained a threat. 

The Fed has kept its benchmark overnight interest rate in the 4.25 per cent-4.50 per cent range since December.