WASHINGTON — The number of job openings in the US fell slightly last month, a sign that the US labor market continues to cool due to high interest rates.
There were 8.18 million job openings in June, down from 8.23 ​​million in May, the Labor Department reported Tuesday.
The U.S. economy and labor market have been remarkably resilient, despite the Federal Reserve’s aggressive campaign to tame inflation by raising its benchmark interest rate to a 23-year high. But higher borrowing costs have taken their toll: the number of job openings peaked at 12.2 million and has been falling more or less steadily since.
Still, 8.2 million is a strong number. Before 2021, there were never more than 8 million monthly job openings.
The Fed sees a decline in hiring as a relatively painless way — compared to layoffs — to cool an overheated labor market and reduce pressure on companies to raise wages, which can fuel inflation.
Job growth has also slowed. So far this year, employers are adding an average of 222,000 jobs per month. That’s a healthy number, but down from last year’s average of 251,000, 377,000 in 2022 and a record 604,000 in 2021, as the economy emerged from COVID-19 lockdowns.
The Labor Department will report employment and unemployment figures for July on Friday. The economy likely added 175,000 jobs in July, a solid but lower number than the 206,000 in June, according to a survey of forecasters by data firm FactSet. The unemployment rate is expected to have remained low at 4.1%.
The Fed is widely expected to leave interest rates unchanged at this week’s meeting but begin cutting them at its next meeting in September.