US job openings fall in August to 7.079 million, but layoffs remain historically low

The American labor market is showing signs of resilience even as demand for workers softens: at the end of August, job openings fell by 256,000 to 7.079 million, while layoffs hit historically low levels.

Job openings in the United States fell in August by 256,000, to 7.079 million on the last day of the month, as Reuters reports, citing the Bureau of Labor Statistics’ JOLTS report. Economists polled by Reuters had forecast 7.225 million openings, while July data was revised up to 7.335 million. The job-openings rate fell to 4.3%, from 4.4% in July.

In contrast, hires rose by 46,000 to 5.192 million, while layoffs and dismissals fell by 61,000 to 1.641 million — with the rate dropping to 1.0% from 1.1% in July, as Reuters writes.

Economists say labor-market stability is being sustained mainly by historically low layoffs, as employers hesitate to step up hiring. The uncertainty brought by the US–Israel war with Iran, which has pushed up energy prices and driven inflation higher, is holding employers back, according to assessments cited by Reuters.

The report comes in a decisive week for the US economy: the Federal Reserve raised its benchmark interest rate this month by 25 basis points, to 3.75–4.00% — the first increase in three years — and signaled further hikes. Financial markets are pricing in about a 70% chance of another increase in October, according to CME’s FedWatch tool. The monthly jobs report for September is published Friday — economists expect 90,000 new jobs and unemployment unchanged at 4.1%.

Meanwhile, diesel prices have hit historic records and economists have warned this could harm the economy.