The U.S. labor market exhibited a notable moderation in June, as evidenced by the latest Job Openings and Labor Turnover Survey (JOLTS) data. This report, closely watched for its insights into labor demand and supply, revealed a decrease in job openings, alongside adjustments in hiring and separation metrics. The figures collectively paint a picture of an evolving employment landscape, reflecting shifts in economic activity and business confidence.
For June, job openings registered 7.437 million, a figure lower than the anticipated 7.500 million and marking the lowest point recorded since April 2025. This decline follows a revision in the prior month's data, which now stands at 7.712 million, down from an initial 7.769 million. Such adjustments underscore a consistent trend of softening demand for labor. Concurrently, the vacancy rate eased to 4.4%, a decrease from 4.6% in the preceding month, further indicating a less tight labor market. The quits rate, a measure of voluntary job separations, also saw a slight dip to 2.0% from a revised 2.1% in May, suggesting a potential reduction in workers' confidence to find new employment opportunities.
A deeper dive into the Bureau of Labor Statistics (BLS) data provides further granularity. In June, the total number of hires amounted to 5.2 million, translating to a hire rate of 3.3%. This figure remained largely stable compared to May. However, specific sectors experienced reductions in hiring, with arts, entertainment, and recreation notable for a decline of 42,000 hires. On the separation front, total separations, encompassing quits, layoffs, and other discharges, stood at 5.1 million, maintaining a rate of 3.2%, largely unchanged from the previous month. Government sectors, particularly state and local government education, as well as the federal government, recorded significant decreases in separations.
Voluntary separations, or quits, totaled 3.1 million in June, with a corresponding rate of 2.0%. This rate saw minor changes from the 2.1% observed in May. Industry-specific analysis revealed that professional and business services, alongside state and local government education and the federal government, experienced notable decreases in voluntary departures. Conversely, involuntary separations, comprising layoffs and discharges, reached 1.6 million, holding steady at a rate of 1.0% from May. While arts, entertainment, and recreation, and state and local government education saw reductions in layoffs, the mining and logging sector paradoxically experienced an increase of 5,000 in these involuntary separations. Other forms of separations in June amounted to 314,000, remaining consistent with May's figures.
The comprehensive JOLTS report for June provides clear evidence of a labor market undergoing a rebalancing phase. The decrease in job openings and the subtle shifts in hiring and separation dynamics across various sectors suggest a move towards a less heated employment environment. These trends are critical for understanding the broader economic trajectory and potential implications for monetary policy decisions.