US Economy: Labor Market Shows Signs Of Slowing As Available Jobs Drop

Amid record-high inflation and rising interest rates, the number of job openings in June fell 6.6%, from 11.3 million in May to 10.7 million this month, according to the latest report from the Labor Department.

June is the first time that job openings have slipped below the 11 million mark since December 2021, while never exceeding 8 million in a month prior to last year.

The largest number of job openings were seen in retail trade, wholesale trade, and state and local government education.

The number of Americans that have quit their jobs also dropped to 4.2 million, while layoffs declined from 1.4 million in May to 1.3 million this month.

Hiring has also hit the brakes, decreasing 2% to 6.37 million jobs, with quits seeing little change at 3.9% or 5.9 million. Separations also fell slightly by 1.4% to 5.93 million.

U.S. employers have found it a challenge to fill open jobs this year, despite rising inflation and interest rates. Employers have added 457,000 jobs a month in 2022 on average, with unemployment near a 50-year low, the Associated Press reported.

While some experts believe the U.S. is in a recession due to the gross domestic product contracting for two consecutive quarters, others say that the low unemployment combined with available jobs is proving otherwise.

Even as job openings decline, there are 1.8 jobs per available worker, leaving a total difference of almost 4.8 million, CNBC noted.