US Job Openings Fall to Lowest Since March, Layoffs Subdued

US job openings fell in August to a five-month low, suggesting employers grew more cautious about expanding their workforces toward the end of the summer, while layoffs remained subdued.

Available positions fell to 7.1 million from 7.3 million in July, according to Bureau of Labor Statistics data out Tuesday. The reading fell short of all estimates in a Bloomberg survey of economists.

The report also showed layoffs fell to the lowest level since March 2025. Hires edged up. The so-called quits rate, which measures the percentage of people voluntarily leaving their jobs each month, held at 1.9% — matching the lowest since 2020.

The decline in openings was broad across several industries. There were fewer vacancies in professional and business services, healthcare and social assistance, state and local government, as well as manufacturing and construction.

The figures are consistent with a low-hire, low-fire labor market. Many employers remain reluctant to either boost headcount or cut staff. Initial filings for unemployment benefits continue to hover around historic lows, indicating minimal layoff activity.

That lack of churn has left many Americans feeling trapped in their jobs or unable to penetrate the labor market amid limited opportunities.

Separate data out Tuesday showed US consumer confidence dropped in September to the weakest level since 2014 amid pessimism about the economy and the labor market.

But limited layoffs and a low unemployment rate has given Federal Reserve officials room to focus on persistent inflation. The central bank raised interest rates earlier this month for the first time since 2023. In a statement released with the decision, policymakers said job gains had kept pace with the workforce while unemployment had changed little.

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There was about one vacancy per unemployed worker in August, which is generally consistent with a balanced labor market. Fed officials watch this ratio closely as a proxy for the balance between labor demand and supply. At its peak in 2022, the ratio was 2 to 1.

Looking ahead, the government’s monthly jobs report due Friday will offer additional insights into the state of the labor market. Economists expect it to show the US created 90,000 jobs in September.