The US labor market is showing signs of cooling.
Job openings fell to their lowest level in 10 months in July, dropping to 7.18 million. This was a miss on economist expectations and was led by declines in healthcare, retail trade, and leisure & hospitality — sectors that previously fueled job growth.
Healthcare vacancies, in particular, dropped to their lowest point since 2021, a key indicator of slowing momentum in a historically robust sector.
The ratio of job openings to unemployed workers, a key metric for labor market health, is now 1:1, down sharply from its peak of 2:1 in 2022. This shift signals a more balanced, but less robust, job market.
As a result, unemployed individuals are taking longer to find new positions, and layoffs are ticking up, particularly in the construction industry.
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