Number of available jobs in US falls below number of unemployed workers for first time since 2021

The number of available jobs is for the first time since 2021 less than the number of unemployed workers, the Labor Department said Wednesday. 

The announce came in the agency's monthly JOLTS survey, which showed that job openings fell to a rounded 7.2 million, down from 7.4 million in June, The Hill news outlet reported. Economic forecasts for the report had ranged from 7.3 million to 7.5 million available jobs.

The decrease is the first time in four years that available jobs have been less than the number of unemployed Americans. There are 7.24 million people seeking jobs and 7.18 million open positions.

Private sector openings dropped for the second month in a row, falling to 6.4 million in July from 6.5 million in June and 6.9 million in May.

Healthcare and social assistance job openings decreased by 181,000, arts and entertainment by 62,000, and mining and logging by 13,000. The number of new hires increased slightly to 5.3 million, and those who quit their jobs remained at 3.2 million.

Despite decreased job creation in recent months, the unemployment rate is still at a low 4.2%.

Last month, Federal Reserve Chair Jerome Powell called the slowdown “curious,” noting both demand and supply for workers had come down together.

“This unusual situation suggests that downside risks to employment are rising. And if those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment,” Powell said.