A representation of the current state of the U.S. job market, showcasing a decline in job vacancies.
Washington, D.C., July 31, 2025
In June, U.S. job openings fell to 7.4 million, reflecting a decrease from May’s 7.7 million. Layoffs remained stable, but voluntary quit rates dropped, indicating reduced worker confidence. Hiring activity also slowed, with projections suggesting an uptick in the unemployment rate to 4.2% in July. The decline in job creation is linked to the effects of interest rate hikes and uncertain trade policies. Despite these trends, layoffs remain below pre-pandemic levels, suggesting continued job security for many workers.
Washington, D.C. – Employers across the United States reported a decrease in job openings in June, with the number of vacancies falling to 7.4 million from 7.7 million in May. The decline aligns with the expectations of economic forecasters, who have been closely monitoring the labor market for signs of slowdown.
Despite the drop in job availability, layoffs in June remained stable, showing no significant changes compared to previous months. However, the number of workers voluntarily quitting their positions decreased to its lowest level since December, suggesting a decline in employee confidence regarding available job opportunities. Additionally, hiring activity also saw a reduction, indicating that businesses may be cautious in their staffing decisions.
Economist Daniel Zhao noted that the overall job figures reflect a “softer” labor market, characterized by decreased hiring and quitting rates. This lack of dynamism in the job market is perceived as “not dire, not amazing, more meh,” according to economic indicators.
The slowdown in the job market through 2023 is attributed to several factors, notably the effects of the Federal Reserve’s eleven interest rate hikes throughout 2022 and 2023. Additionally, uncertainties stemming from the trade policies enacted under former President Trump have further complicated the economic landscape.
As forecasts for July are anticipated, economists predict a potential rise in the unemployment rate from 4.1% in June to 4.2% in July. The expected job creation for July is estimated at 115,000, a decrease from the 147,000 jobs added in June. In June, private payrolls reflected an increase of only 74,000, marking the lowest addition of jobs since last October. This downturn may have been influenced by job disruptions caused by recent hurricanes.
State and local government sectors experienced a boost, contributing approximately 64,000 education jobs in June. However, this increase is likely inflated due to seasonal factors tied to the end of the school year.
The average job creation rate this year has also lessened, with the economy generating around 130,000 jobs per month, a significant decline from the 168,000 jobs added in 2022 and far below the average of 400,000 monthly jobs created in the recovery phase following COVID-19 lockdowns. Despite the overall slowdown in hiring, the number of layoffs remains below pre-pandemic levels, indicating ongoing job security for many workers in the current economic climate.
The decline is attributed to the repercussions of multiple interest rate hikes by the Federal Reserve and uncertainties in trade policies.
The drop in quitting rates shows decreased confidence among workers regarding job opportunities in the market.
The current rate of job creation has substantially decreased, with an average of 130,000 jobs per month in 2023 compared to 168,000 in 2022.
Economists predict a slight increase in the unemployment rate to 4.2% for July.
| Feature | June 2023 | May 2023 |
|---|---|---|
| Job Openings | 7.4 million | 7.7 million |
| Unemployment Rate | 4.1% (projected 4.2% for July) | N/A |
| Jobs Added | 115,000 (projected for July) | 147,000 |
| Private Payroll Increase | 74,000 | N/A |
| Average Jobs Created (2023) | 130,000 | 168,000 (2022) |
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