US Labor Market Shows Signs of Cooling as Job Openings Decline

US job openings fell more than expected in July, dropping by 176,000 to 7.181 million, according to the Labor Department's JOLTS report. Economists had anticipated 7.378 million unfilled positions. Hiring edged up modestly by 41,000 to 5.308 million, while layoffs increased by 12,000 to 1.808 million.

The labor market slowdown reflects broader economic pressures, including the impact of trade tariffs and tighter immigration policies. August's nonfarm payrolls are projected to show a gain of 75,000 jobs, continuing the subdued trend seen in recent months.

Federal Reserve Chair Jerome Powell has flagged potential rate cuts amid rising labor market risks, though inflationary concerns persist. The central bank's benchmark rate remains unchanged at 4.25%-4.50% as policymakers weigh competing economic signals.