U.S. employers posted fewer job openings in August, with available positions falling to 7.08 million from a revised 7.34 million in July, according to the Labor Department’s latest Job Openings and Labor Turnover Survey (JOLTS). The decline came as businesses faced higher energy costs linked to fighting with Iran, while the broader labor market continued to show signs of stability.
The August figures offer a picture of a labor market that has cooled from the rapid hiring period following the COVID-19 lockdowns. Employers are adding fewer jobs than in recent years, but layoffs remain contained and many workers continue to experience a relatively strong level of job security.
Job Openings Fall While Layoffs Remain Limited
The Labor Department reported that job openings in August came in below the 7.2 million expected by forecasters. The JOLTS report also showed that layoffs declined during the month, while the number of workers leaving their jobs changed little. The level of voluntary departures is often viewed as an indicator of workers’ confidence in finding new opportunities.
According to the Labor Department data, gross hiring increased slightly in August, though hiring activity remained below the levels recorded during the stronger labor market conditions of previous years. Employers, including businesses, nonprofits and government agencies, have added an average of 80,000 jobs per month so far this year.
That pace represents an improvement from 2025, when employers added an average of 9,700 jobs per month. The weaker hiring environment last year followed a period of higher interest rates and uncertainty surrounding President Donald Trump’s trade policies, factors that discouraged some businesses from expanding their workforces.
The next monthly jobs report from the Labor Department was expected to show that the United States added 95,000 jobs in September. A FactSet survey of forecasters indicated that the unemployment rate was expected to remain at 4.1%.
A Slower Labor Market Creates Challenges for Job Seekers
While employers have generally avoided large-scale layoffs, hiring has not matched the pace seen earlier in the decade. Average monthly job creation was 166,000 in 2023 and 2024, compared with 491,000 per month during the 2021-2022 hiring surge that followed COVID-19 restrictions.
The slower pace has created different experiences for workers depending on their position in the labor market. People who already have jobs may continue to benefit from stability, while those looking for new positions can face fewer available openings.
Cory Stahle, senior economist at Indeed, described the current labor market as less active than it was a few years ago. “It’s a comfortable place to be if you already have a job. It’s a frustrating one if you’re trying to find one, especially for new graduates and others entering the workforce,” Stahle said.
According to the Conference Board’s monthly index released Tuesday, Americans’ views of the economy have fallen to their lowest level in more than a decade. The survey reflects concerns among consumers even as employment conditions remain relatively stable. The August JOLTS figures show a labor market moving at a slower pace, with fewer openings and reduced hiring activity compared with recent years. At the same time, limited layoffs and steady employment conditions continue to shape the current economic picture.
