Job Openings Rise, but Hiring and Factory Activity Cool — Evening Brief – 09.01.26
U.S. job openings increased in July, but weaker hiring and fewer resignations indicated that employers and workers were becoming more cautious as other economic data showed mixed momentum.
Job openings rose to 7.27 million from a downwardly revised 7.18 million in June, the Bureau of Labor Statistics reported in its Job Openings and Labor Turnover Survey. The July total fell short of the 7.36 million consensus estimate, while June’s reading was cut by 177,000 from the initial estimate.
Openings increased in nondurable goods manufacturing, state and local government excluding education, and health care and social assistance. Vacancies declined in transportation, warehousing and utilities; professional and business services; and leisure and hospitality.
Employers made 5.05 million hires, down from 5.33 million in June. The hiring rate slipped to 3.2% from 3.4%.
Quits declined to 3.06 million from 3.31 million, pushing the quits rate down to 1.9%. Because workers typically leave jobs voluntarily when confident about finding better opportunities, the decrease suggests weakening labor-market confidence.
Layoffs fell to 1.67 million from 1.79 million, however, signaling that employers were not sharply reducing payrolls.
Separately, the Institute for Supply Management’s manufacturing purchasing managers index eased to 54.6 in August from 55.6 in July, missing the 55.2 consensus. Readings above 50 indicate manufacturing expansion.
New orders, production and order backlogs grew more slowly, while supplier deliveries increased, indicating longer delivery times. The prices index remained elevated at 71.1.
“The Production Index expanded for the 10th month in a row, though at a slower pace,” said Susan Spence, chair of ISM’s Manufacturing Business Survey Committee.
Construction spending added another soft signal, falling 0.5% in July to a seasonally adjusted annual rate of $2.16 trillion. Spending was 3.8% below its year-earlier level, with both private and public construction declining.