U.S. Labor Market Shows Signs of Cooling as Job Openings Decline in July

The U.S. labor market displayed unexpected softness in July, with job openings falling to 7.18 million—below both consensus estimates of 7.38 million and June's revised 7.36 million figure. This marks the weakest reading since July 2021, though remains elevated compared to pre-pandemic levels.

Sectoral cuts drove the decline, with healthcare and social assistance shedding 181,000 positions, retailers eliminating 110,000 roles, and arts/entertainment firms cutting 62,000 jobs. The data coincides with a rise to 6.2 million Americans classified as marginally attached to the labor force—the highest since mid-2021—indicating growing slack despite historically strong headline numbers.

While quits held steady at 3.2 million, the report suggests employers are becoming more cautious. The cooling labor landscape may influence Federal Reserve policy decisions, with potential implications for risk assets including cryptocurrencies.