The US labour market has hit a critical juncture, with new government data showing that job openings have fallen below the number of unemployed workers
for the first time since April 2021. According to the Bureau of Labor Statistics (BLS), job openings slipped to 7.18 million in July, down from 7.36 million in June, and lower than the 7.2 million Americans actively seeking work. “This is a turning point for the labour market. It’s yet another crack,” said Heather Long, chief economist at Navy Federal Credit Union, as per a CNN report. The figures come just weeks after President Donald Trump fired the BLS commissioner, baselessly alleging manipulated data following weak July employment gains. A Sign of Weakening Momentum Economists had expected July openings to remain relatively stable at 7.37 million, but the sharper decline has reinforced fears that the slowdown is structural rather than seasonal. Dan North, senior economist for North America at Allianz Trade, told CNN, “Certainly, I think the employment report on Friday is the more important number. We expect this month to be light again, similar to what we had last month.” The latest JOLTS (Job Openings and Labor Turnover Survey) report underscores a stagnant hiring environment. Worker mobility has slowed, layoffs remain subdued, and voluntary job changes have dropped — all pointing to a lack of churn that typically boosts wages and productivity. Allison Shrivastava, an economist at Indeed, noted: “Labour market churn matters: it can help drive up wages, create more opportunities for a broader range of workers, and support innovation. For the past few months, the opposite has largely held true.” Sector-Specific Pressures Healthcare and social assistance — once key drivers of job growth — saw the sharpest decline in openings, with leisure and hospitality also recording dips. Gains were limited to wholesale trade, construction, and the federal government, where immigration enforcement and post-layoff recruitment efforts are fuelling demand. Friday’s August jobs report will be closely watched, with economists forecasting subdued job gains of around 80,000 and unemployment holding at 4.2 per cent. Any further downside surprise could signal a deeper slowdown that may reshape the Federal Reserve’s approach to interest rates and the Trump administration’s fiscal policies. The latest downturn suggests that the US economy, long supported by a resilient labour market, may be entering a more fragile phase where even robust industries like healthcare are no longer immune to a broad hiring freeze.
