Finance — Business

Plummeting U.S. job openings reach a three-year nadir, stirring apprehension over economic downturn

Decline in US job openings hits a three-year low in July, raising economic worries as the count of unemployed workers exceeds the number of vacant positions for the first time.

, and Administrator

2025 September 13 . 6:07 AM

2 min read

Job vacancies in the U.S. substantially decrease, stirring anxieties about an impending economic... — Job vacancies in the U.S. substantially decrease, stirring anxieties about an impending economic downturn

Plummeting U.S. job openings reach a three-year nadir, stirring apprehension over economic downturn

The U.S. Bureau of Labor Statistics (BLS) released the July edition of the Job Openings and Labor Turnover Survey (JOLTS), providing a snapshot of the current labor market. The August job reports, due on Friday, 5th August, are expected to offer a clearer picture, with forecasted moderate job gains of around 75,000 to 80,000 and the unemployment rate holding steady or climbing slightly to 4.3%.

The recent data reveals a significant decrease in job openings, with the number dropping to 7.181 million in July, down from 7.36 million in June. This sharp drop of 176,000 job openings suggests a rapidly cooling labor market.

The retail industry and sectors such as wholesale trade, construction, and the federal government, particularly immigration enforcement, have experienced an increase in job openings. However, the healthcare and social assistance sector has shown a significant decline, with the metric dropping to 181,000 job openings.

The ratio of job openings to unemployed workers has not been this low since April 2021. The key metric of job openings is now at its lowest level since September 2024, with the ratio decreasing from 1.0 to 0.99 job openings. This development marks a significant shift, as the number of unemployed workers officially surpassed the number of available positions for the first time in over four years.

Economists have expressed concerns about the potential for a recession due to high interest rates and trade tensions from sweeping import tariffs. To address these concerns, experts anticipate that the Federal Reserve will cut its benchmark interest rate from the current range of 4.25%-4.50% in the upcoming September meeting.

As the labor market continues to evolve, the August job reports will offer valuable insights into the current state of the economy and potential future trends. Stay tuned for further updates.