US job openings June 2025 fell to 7.4M, missing 7.5M forecasts, per the JOLTS report. Learn how this impacts the economy and job seekers.
Washington, July 30, 2025 – The US labor market took a noticeable dip as US job openings June 2025 fell to 7.4 million, down from 7.7 million in May, according to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS) released on July 29, 2025.
This figure missed economists’ expectations of 7.5 million, signaling a cooling job market amid economic challenges like trade uncertainties and high interest rates.
The drop in US job openings June 2025 marks the first monthly decline since March, raising questions about the economy’s direction.
US Job Openings June 2025: A Closer Look
The BLS reported US job openings June 2025 at exactly 7.437 million, a decline of 275,000 from May’s revised 7.712 million. Economists surveyed by Reuters and Bloomberg had forecasted 7.5 million openings, making the actual number a miss of about 63,000.
This shortfall highlights a slowdown in employer demand for workers, a trend that has been building since the post-pandemic peak of 12 million openings in March 2022.
Key data points from the JOLTS report include:
- Hires: Remained stable at 5.2 million, though declines were noted in healthcare, manufacturing, and professional services. The hiring rate dipped to 3.3% from 3.4%.
- Quits: Voluntary quits fell to 3.1 million, the lowest since December 2024, with the quits rate holding at 2.0%. This suggests workers are less confident about finding better jobs.
- Layoffs and Discharges: Stayed steady at 1.6 million, with a layoffs rate of 1.0%, indicating businesses are not yet resorting to widespread job cuts.
- Job Openings Ratio: The ratio of openings to unemployed workers dropped to 1.06 from 1.07, pointing to a balanced but cooling labor market.
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Why Are US Job Openings June 2025 Declining?
Several factors are driving the decline in US job openings June 2025. The Federal Reserve’s 11 interest rate hikes in 2022 and 2023, which set the benchmark rate at 4.25%-4.5%, have raised borrowing costs, making businesses cautious about expansion.
Additionally, uncertainty over President Donald Trump’s import tariffs, particularly after the expiration of a 90-day pause, has created a “volatile” environment for industries like manufacturing and retail.
The JOLTS report showed significant sector-specific shifts:
- Accommodation and Food Services: Job openings plummeted by 308,000, reflecting caution in hospitality amid economic uncertainty.
- Healthcare and Social Assistance: Openings dropped by 244,000, with hiring also slowing.
- Finance and Insurance: Vacancies fell by 142,000, signaling caution in financial sectors.
- Retail Trade: Bucked the trend with a 190,000 increase in openings, showing resilience in consumer-facing industries.
- Federal Government: Saw a 39,000 drop, partly due to a White House hiring freeze.
Expert Views on US Job Openings June 2025
Economists see the US job openings June 2025 data as a sign of a labor market in transition. Glassdoor’s Daniel Zhao described the report as “soft but not dire” on Bluesky, noting that while demand is easing, the market remains stable. “Hires and quits are sluggish, but layoffs aren’t spiking,” he said.
Federal Reserve Chair Jerome Powell emphasized a cautious approach, stating the Fed will “wait and learn more” about tariffs’ impact on inflation before considering rate cuts, likely delaying action until September 2025.
The CME FedWatch Tool suggests a 25% chance of a 25-basis-point cut in July.
Implications for Workers and Businesses
The decline in US job openings June 2025 means tougher competition for job seekers, as fewer workers are quitting, reducing turnover. Employers may focus on critical roles and upskilling current staff rather than expanding headcount. For workers, the lower quits rate suggests caution about job-hopping, as opportunities may be harder to find.
The upcoming BLS Employment Situation Summary, due in early August, will shed more light on labor trends. Economists expect the unemployment rate to hold at 4.2%, with nonfarm payrolls adding about 125,000 jobs, down from 177,000 in May. While the labor market isn’t collapsing, the cooling trend suggests a shift toward a more selective hiring environment.
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Economic Outlook and Why It Matters
The US job openings June 2025 data is a key indicator of economic health, reflecting employer confidence and worker mobility. As the US navigates trade uncertainties and high interest rates, the labor market’s trajectory will shape economic outcomes in 2025. Businesses may need to adapt hiring strategies, while job seekers should prepare for a more competitive landscape.