Haciyev Reşit 
Signs of a slowdown in the U.S. labor market are raising concerns ahead of the release of nonfarm payrolls data. The latest job openings report fell short of expectations, marking one of the first signals of weakening employment.
Job Openings Below Expectations
In July, U.S. job openings came in at 7.18 million, below the market expectation of 7.4 million.
- This marks only the second time in the post-pandemic period that the figure has dropped below 7.2 million.
- The last time it fell lower was in September 2024, when openings stood at 7.1 million.
- During the early pandemic shock, job openings had plunged below 5 million.
- In the recovery period, job postings surged to nearly 12 million, hitting historic highs.
Cracks Emerging in the Labor Market
Heather Long, chief economist at Navy Federal Credit Union, told CNBC that the labor market is now showing signs of real weakness:
“These data show we’re at a turning point for the job market. Cracks are now visible. The labor market has cooled, even frozen… It’s very hard to find a job in the U.S. right now.”
Critical for the Fed’s Decision
Tomorrow’s August nonfarm payrolls report will play a key role in shaping the Fed’s September 17 rate decision.
- Expected job gains: 78,000
- Unemployment rate: seen rising from 4.2% to 4.3%
If the report confirms labor market weakness, the Fed may be more inclined toward an interest rate cut.
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