US job openings decline to lowest level in nearly a year

[WASHINGTON] US job openings fell in July to the lowest in 10 months, adding to other data that show a gradually diminishing appetite for workers amid heightened policy uncertainty.

Available positions decreased to 7.18 million from a downwardly revised 7.36 million reading in June, according to Bureau of Labor Statistics data published on Wednesday (Sep 3). The median estimate in a Bloomberg survey of economists called for 7.38 million openings.

The pullback in openings was driven by health care, retail trade and leisure and hospitality. Treasury yields fell and the S&P 500 remained higher after the report.

The slide in vacancies indicates companies are becoming more cautious and selective with their hiring as they attempt to gauge the impact of President Donald Trump’s trade policy on the economy. In addition to the openings data, the pace of hiring has slowed and it is taking longer for unemployed people to find another position.

Federal Reserve policymakers are closely monitoring labour market data for any concerning signs of weakness. Fed chair Jerome Powell said in a speech last month that “downside risks to employment are rising.” Investors anticipate that officials will lower interest rates by a quarter percentage point at their policy meeting later this month.

The number of layoffs edged up to the highest since September and reflected more dismissals in construction. BLOOMBERG