WASHINGTON, D.C. — U.S. job openings rose to 7.27 million in July from a revised 7.18 million in June, according to the Labor Department's Job Openings and Labor Turnover Survey. Layoffs fell in July while the number of people quitting their jobs decreased during the same period.

Gross hiring dipped to 5.1 million in July from 5.3 million in June, reflecting a decline in worker movement into new positions. This reduction in hiring activity occurred alongside the decrease in voluntary resignations, suggesting a slowdown in labor market churn. The unemployment rate stood at 4.1% during this reporting period.

Chief Economist Heather Long characterized the current employment landscape in an interview. "The labor market is back in the ‘low fire, low hire’ mode," Long said. She attributed this shift to external economic pressures affecting business decisions. "Companies are growing cautious as the war in Iran drags on and borrowing costs have spiked," Long said.

Broader employment data shows that U.S. employers added an average of 61,000 net jobs per month so far this year. This pace represents a significant deceleration from previous periods, with monthly job growth falling below 10,000 in 2025. The combination of rising job openings and declining hiring rates presents a complex picture of labor demand and employer caution.

Looking ahead, forecasters surveyed by FactSet expect the August hiring report to show employers added 65,000 jobs. These same forecasters anticipate the August unemployment rate will rise to 4.2%, marking an increase of 0.1 percentage points from the current level. The Bureau of Labor Statistics Job Openings and Labor Turnover Survey reported 9.6 million job openings on August 20, providing a more recent data point.

Why It Matters

The divergence between rising job openings and falling hiring rates shows a specific dynamic in the labor market where employers maintain vacancies but reduce actual recruitment. This pattern aligns with the described 'low fire, low hire' mode, where businesses retain staff but hesitate to expand payrolls due to geopolitical conflict and high borrowing costs. The anticipated rise in the unemployment rate to 4.2% suggests that this caution may begin to impact overall employment levels more directly.

The data indicates that while job separations through layoffs and quits have declined, the flow of workers into new roles has also slowed. This stagnation in labor mobility affects both employers seeking talent and workers seeking new opportunities. The contrast between the 7.27 million openings in July and the 9.6 million reported in August 20 reflects the volatility and rapid changes occurring within the labor market metrics over a short timeframe.

House lawmakers returned to Washington on Monday after five. The House is expected to vote on a stopgap spending bill to.