There were 8.18 million job vacancies, down from 8.23 million in May. This small drop shows that the job market is slowing down due to high borrowing costs.
Even though job openings have decreased, 8.18 million is still a strong number compared to the past. Before 2021, there were never more than 8 million job openings in a month.
The Federal Reserve’s efforts to control inflation by raising interest rates have made borrowing more expensive, which impacts job growth. The Fed hopes that by lowering job openings, they can help control inflation without causing many layoffs.
On Friday, we’ll get new data about how many jobs were added in July and the unemployment rate, which is expected to stay at 4.1%. The Fed is likely to keep interest rates the same for now but might reduce them in September.