US Job Openings Increase in July, but Hiring Remains Weak

U.S. job openings increased in July, supported largely by a rise in manufacturing vacancies, while weaker hiring indicated that the labor market continued to remain relatively subdued.

According to the Labor Department's Bureau of Labor Statistics, job openings rose by 89,000 to 7.271 million at the end of July. The June figure was revised down to 7.182 million from the previously reported 7.359 million. Economists surveyed by Reuters had expected 7.300 million openings for July.

Manufacturing vacancies increased by 79,000 during the month, with most of the increase coming from durable goods industries. Professional and business services also recorded 65,000 job openings. The overall job openings rate edged up to 4.4% in July from 4.3% in June.

Despite the increase in vacancies, hiring fell by 278,000 to 5.054 million, with professional and business services accounting for a decline of 188,000. The hiring rate dropped to 3.2% from 3.4% in June.

Layoffs and discharges declined by 119,000 to 1.666 million, while the rate fell to 1.0% from 1.1%. Economists said historically low layoffs have accounted for much of the employment growth this year.

The labor market is generally considered stable, allowing the Federal Reserve to continue focusing on persistent inflation. The government is scheduled to release its closely watched August employment report on Friday, with economists surveyed by Reuters expecting nonfarm payrolls to recover following an unexpected decline in July.