The July JOLTS data confirms the softer employment trend that began in the second half of 2024, with the number of job openings down for the second straight month, with a lackluster rate of hiring that highlights the weak demand for labor. However, this data on its own will not nudge the Federal Reserve out of its holding pattern on interest rates.

The number of job openings fell to 7.181 million (4.3 percent) in July, from a downwardly revised 7.357 million (4.4 percent) in June and compared to the expectation of 7.375 million in the Econoday survey of forecasters. Job openings are down by 323,000 compared to a year ago.

July hires were 5.308 million (3.3 percent), after 5.267 million (3.3 percent) in June, but were lower by 143,000 compared to July 2024.

The number of total separations was 5.289 million (3.3 percent) in July, vs 5.341 million (3.3 percent) in June. Within separations, July quits were at 3.208 million (2.0 percent) after 3.209 million (2.0 percent) in June, while layoffs and discharges came in at 1.808 million (1.1 percent) following 1.796 million (1.1 percent) in June.

The Labor Department's JOLTS report tracks monthly change in job openings and offers rates on hiring and quits. The reporting period lags other employment data including the employment situation report. The word JOLTS stands for Job Openings and Labor Turnover Survey.

Although lagging the release timing of the employment situation report by a month, JOLTS provides additional information on the labor market. The payroll survey in the employment situation report provides numbers on net job changes. JOLTS breaks down labor market data into pre-net changes such as job openings, hires, and separations.