August Job Openings Rise as Looming Shutdown Threatens Nonfarm Payroll Report Release

12:40 PM EDT, 09/30/2025 (MT Newswires) -- US job openings rose in August, while hiring eased as markets weighed the prospects of a potential federal government shutdown that could delay crucial economic data, including Friday's nonfarm payroll report.

Vacancies increased to 7.23 million as of the last day of August from 7.21 million the month before, according to the Bureau of Labor Statistics' job openings and labor turnover survey. The consensus was for a 7.2 million level in a survey compiled by Bloomberg.

Private job openings increased to 6.46 million last month from 6.40 million in July, according to BLS data. Vacancies rose by 97,000 in leisure and hospitality, while the number of job openings decreased by 115,000 in construction.

Hiring fell to 5.13 million in August from 5.24 million the month prior. Separations declined to 5.11 million from 5.22 million, the data showed.

Tuesday's BLS data comes ahead of the official jobs report for this month, which is currently scheduled for a Friday release. However, a looming federal government shutdown is likely to delay that key report.

"A government shutdown seems increasingly likely with today's midnight deadline rapidly approaching," Stifel Chief Economist Lindsey Piegza said in a note. "While some are still optimistic a deal can be reached, a shutdown -- particularly if prolonged -- can weigh on the economy and consumers, impacting economic data releases (including Friday's nonfarm payroll report) and eroding not just confidence but realized activity levels, potentially reducing GDP."

Assuming a shutdown is avoided and the September nonfarm payrolls report is released, it is expected to show a payroll gain of 51,000, compared with August's 22,000 rise, according to the Stifel note.

The ratio of job openings to unemployed people, which is closely monitored by Federal Reserve officials as a proxy of the balance between labor supply and demand, declined to the lowest level since April 2021, Piegza said. That signals "there continue to be more unemployed Americans than there are open jobs," according to the Stifel note.

Last week, Fed Chair Jerome Powell said the US central bank was facing a "challenging situation" with respect to its dual mandate of price stability and maximum employment, noting that near-term risks to inflation were tilted to the upside and those to employment leaning downside.

Separately, Fed Vice Chair for Supervision Michelle Bowman on Friday reiterated that policymakers are at a "serious risk of already being behind the curve" in addressing a weakening labor market.

Earlier this month, the Fed reduced its benchmark lending rate by 25 basis points to a range of 4% to 4.25%, signaling further policy easing later in 2025.

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