US August JOLTS Job Openings Slightly Increase, Labor Market Shows Cooling Signs

2025-10-02

In August 2025, U.S. JOLTS job openings edged up to 7.227 million, slightly above market expectations of 7.185 million and marginally higher than the revised July figure of 7.21 million. However, this level remains far below the peak of over 11 million seen in early 2022. Compared with the same period last year, job openings fell by 5.5%, indicating continued weakening in overall labor demand. Overall, slower hiring activity and fewer resignations reflect reduced worker confidence in reemployment, while the number of unemployed has now surpassed job openings, marking a shift in the labor market from “supply-constrained” to “demand-constrained.”

Breakdown of Key Figures

  • Job Openings: 7.227 million in August, up 19,000 from the revised July figure.
  • Hiring Rate: Declined to 3.2%, the lowest since June 2024.
  • Layoffs: Dropped to 1.725 million, remaining at historically low levels.
  • Quits: Fell by 75,000 to 3.091 million, the lowest since 2025 began.
  • Industry Differences: Job openings in accommodation and food services rose slightly; construction saw a sharp drop of 115,000; and federal government job openings fell to their lowest level since 2021.

Overall, the August JOLTS data suggest that U.S. labor demand is gradually cooling. Weak hiring and declining quits are clear signals of lower worker confidence. In the short term (1–2 months), the labor market is expected to remain subdued, with unemployment potentially ticking higher. In the medium term (within six months), demand could gradually recover as the Federal Reserve may proceed with further rate cuts to stimulate the economy. However, inflationary pressures and global economic uncertainties remain key challenges. In addition, the federal budget deadlock and potential delays in data releases may further complicate policymaking, heightening short-term market volatility.