U.S. job openings fell slightly last month, a sign that the American labor market continues to cool in the face of high interest rates.
There were 8.18 million job vacancies in June, down from 8.23 million in May, the Labor Department reported Tuesday. The June number was stronger than expected: Forecasters had expected 8 million job openings.
Still, the report showed other signs of a slowing job market. Employers hired 5.3 million people, fewest since April 2020 when the pandemic was hammering the economy. The number of people quitting their jobs—a decision that reflects confidence in their ability to find higher pay or better working conditions elsewhere—slid to 3.3 million, fewest since November 2020.
But layoffs dropped to 1.5 million, lowest since November 2022 and down from 1.7 million in May, a sign that employers remain reluctant to let go of staff.
Vacancies rose at hotels and restaurants and at state and local governments (excluding schools). Openings fell at factories making long-lasting manufactured goods and at the federal government.
The U.S. economy and job market have proven remarkably resilient despite the Federal Reserve’s aggressive campaign to tame inflation by raising its benchmark interest rate to a 23-year high. But higher borrowing costs have taken a toll: Job openings peaked in 12.2 million and have come down more or less steadily ever since.
