Declining job openings and resignations signal weakening US labor market

Job openings in the US fell to the lowest level in nearly 2-1/2 years in July, indicating a slowdown in the labor market and increasing expectations that the Federal Reserve will keep interest rates unchanged next month. The number of people quitting their jobs also dropped, suggesting a decline in confidence in the labor market. Despite this, labor market conditions remain tight, with more job openings than unemployed persons. The decrease in job openings was led by the professional and business services sector, healthcare and social assistance, and state and local government. The decline in vacancies is seen as a rebalancing of the labor market without pushing up unemployment.