US Job Openings Rise Slightly to 7.27 Million in July, Labor Market Holds Steady

Job Openings Edge Higher

US job openings rose slightly to 7.27 million in July from a revised 7.18 million in June, the Labor Department reported Tuesday. The figure came in below the market expectation of 7.3 million, as reported by FXStreet. The Job Openings and Labor Turnover Survey (JOLTS) showed that layoffs fell, but so did the number of people quitting their jobs, a sign of reduced confidence in their prospects, according to the Associated Press.

Hires and total separations both changed little at 5.1 million in July, the Bureau of Labor Statistics (BLS) noted in its press release. Within separations, quits (3.1 million) and layoffs and discharges (1.7 million) were little changed. Gross hiring dipped to 5.1 million in July from 5.3 million in June, the Associated Press reported.

Labor Market 'Ambling Along'

Despite the slight uptick in openings, the American labor market remains sturdy in the face of higher costs squeezing household budgets, the Associated Press reported. "The labor market is back in the 'low fire, low hire' mode," said Heather Long, chief economist at Navy Federal Credit Union. "Companies are growing cautious as the war in Iran drags on and borrowing costs have spiked."

So far this year, US employers added an average of 61,000 net jobs a month, a figure dragged down by job losses in February and July. The unemployment rate remains at a low 4.1%, and the number of people signing up for unemployment benefits has remained low week after week, according to the Associated Press.

The job market is "hardly booming, but it is ambling along despite an energy shock caused by the fighting with Iran that has squeezed family budgets," the Associated Press reported.

Market Reaction and Outlook

The JOLTS report failed to trigger a noticeable market reaction, according to FXStreet. At the time of press, the US Dollar Index was up 0.15% on the day at 99.55. The report comes amid a busy week for US employment data, with the July JOLTS release ahead of the key Nonfarm Payrolls (NFP) report on Friday. In July, the US economy lost 23,000 jobs, which FXStreet noted is likely to reflect tepid labor demand.

Market participants are closely watching the data for signals on the Federal Reserve's next policy move. FXStreet noted that market players have lifted bets for a September Federal Reserve rate hike ahead of employment data releases, with inflation concerns weighing on the mood.

The Labor Department is expected to report Friday that employers added 65,000 jobs in August and that the unemployment rate ticked up to 4.2%, according to a survey of forecasters by the data firm FactSet, as reported by the Associated Press.