Economy August 4, 2026 10:24 AM

June job openings fall as hiring edges up and layoffs remain low

Decline concentrated in healthcare and social assistance; hiring rise and steady layoffs point to a stable labor market

By Priya Menon
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The Labor Department's JOLTS report showed U.S. job openings fell by 178,000 in June to 7.359 million, driven largely by a drop in healthcare and social assistance vacancies. At the same time, hiring rose by 96,000 and layoffs remained subdued, while economists cautioned about falling survey response rates and flagged potential risks to payroll and unemployment readings.

June job openings fall as hiring edges up and layoffs remain low
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Key Points

  • Job openings fell by 178,000 in June to 7.359 million, with healthcare and social assistance accounting for a 147,000 decrease.
  • Hiring increased by 96,000 to 5.348 million, pushing the hires rate to 3.4%, while layoffs remained steady at 1.766 million (1.1%).
  • Federal Reserve maintained its 3.50%-3.75% policy range last week; three Fed policymakers dissented in favor of a 25 basis point hike.

WASHINGTON, Aug 4 - U.S. job openings declined in June even as hiring picked up and layoffs held near recent lows, according to the Labor Department's Job Openings and Labor Turnover Survey (JOLTS) released on Tuesday. Open positions fell by 178,000 from May to reach 7.359 million at the end of June.

The decrease in unfilled roles was concentrated in the healthcare and social assistance sector, where openings dropped by 147,000 during the month. The overall job openings rate cooled to 4.4% in June from 4.5% in May.

Hiring activity increased by 96,000, bringing total hires to 5.348 million in June. The hires rate rose to 3.4% from 3.3% the month prior. At the same time, layoffs and discharges were largely unchanged at 1.766 million, leaving the layoffs rate steady at 1.1%.

Economists surveyed had expected 7.400 million unfilled positions for June. Some analysts have urged caution in interpreting the JOLTS figures, noting the survey's response rate has fallen substantially, which could affect the precision of the readings.


Policymakers at the U.S. central bank remain focused on inflation against this backdrop of a labor market that many describe as operating in a "slow-hire, slow-fire" mode. The Federal Reserve last week kept the target range for its benchmark overnight rate at 3.50% to 3.75%. Within the Fed's policy-setting committee, three members dissented, each favoring a quarter-percentage-point increase.

Forward-looking labor market gauges and the upcoming payroll report add to near-term scrutiny. A Reuters survey of economists projects that nonfarm payrolls rose by 80,000 jobs in July, following an increase of 57,000 in June. The Bureau of Labor Statistics is scheduled to publish the official July employment report on Friday, with the unemployment rate forecast to hold at 4.2%.

There are indicators that could point to softening in labor market sentiment: a Conference Board survey released last week showed the share of consumers who view jobs as "plentiful" declined in July to its lowest level since February 2021, a development that analysts say could weigh on hiring and consumer confidence.


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Risks

  • Declining response rates to the JOLTS survey could reduce the reliability of job openings and hiring estimates - this affects labor market analysis and sectors reliant on workforce planning.
  • Consumer sentiment on job availability has weakened, with the Conference Board reporting the 'plentiful' jobs measure at its lowest since February 2021, which could presage softer hiring and demand in sectors such as services and healthcare.
  • Policy uncertainty highlighted by three Fed dissenters suggests potential for further rate volatility, which could influence financial markets and interest-sensitive industries.

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