July Job Openings Fall as Markets Await Key Employment Report

02:59 PM EDT, 09/03/2025 (MT Newswires) -- US job openings declined in July for the second month in a row, government data showed Wednesday, as markets awaited a key employment report due out later this week.

Vacancies dropped to 7.18 million as of the last day of July from 7.36 million the month before, according to the Bureau of Labor Statistics' job openings and labor turnover survey. That's the lowest level since September 2024, CNBC and Reuters reported.

The consensus was for a 7.38 million level in a survey compiled by Bloomberg.

Private job openings fell to about 6.4 million in July from 6.54 million in June, according to BLS data. Vacancies fell by 181,000 in health care and social assistance, and by 110,000 in retail trade.

The BLS is expected to report Friday that the US economy added 75,000 nonfarm jobs last month, compared with a 73,000 gain reported for July, according to a Bloomberg-compiled survey. The unemployment rate is projected to tick up to 4.3% from 4.2%.

"The July JOLTS report showed further signs of softening labor market conditions," Oxford Economics said. "The August employment report will be more pivotal than the JOLTS data in determining whether the (Federal Reserve) cuts rates at its upcoming meeting, but the picture of the labor market painted by the JOLTS along with our forecast for August employment points to a rate cut at the next meeting."

The Fed is widely expected to cut interest rates this month. Chair Jerome Powell in August indicated a potential monetary policy pivot, saying that downside risks to employment were rising, while the effects of tariffs on inflation will likely be short lived.

Fed Governor Christopher Waller, one of the two dissenters at the July meeting that decided to leave rates steady, told CNBC on Wednesday that the central bank should lower its benchmark lending rate later this month amid risks to the labor market.

Separately, Atlanta Fed President Raphael Bostic backed a 25 basis-point rate cut "over the remainder of this year," citing a slowdown in the labor market.

"With a significant loss of momentum in hiring as of late, the Fed is increasingly open to the prospect of a near-term rate cut," Stifel Chief Economist Lindsey Piegza said in note e-mailed to MT Newswires. "A weaker-than-expected payroll report will only compound the market's expectation for action later this month."

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.