The July 2023 Jobs Report & June 2023 JOLTS: The Current U.S. Employment Situation

The U.S. economy showed signs of slowing down slightly in July. According to the U.S. Department of Labor’s jobs report, 187,000 jobs were added in July, fewer than expected and not nearly as many as the average monthly gain of 312,000 over the prior 12 months. Despite the reduced pace in job growth, the unemployment rate fell marginally to 3.5%, and the number of unemployed persons also saw a decrease to 5.8 million.

Meanwhile, the Job Openings and Labor Turnover Summary (JOLTS) showed the number of job openings remained relatively unchanged at 9.6 million. Hiring activity slowed down with the number of hires decreasing to 5.9 million. Total separations also decreased to 5.6 million, with voluntary quits forming the majority at 3.8 million, and layoffs and discharges holding steady at 1.5 million.

Key highlights from the reports include:

• June’s total number of jobs added was revised down to 185,000, making it lower than July’s total.
• Hires decreased notably in durable goods manufacturing and finance and insurance.
• The quit rate decreased with noticeable drops in the retail trade, health care and social assistance, and construction sectors. In contrast, arts, entertainment, and recreation sectors saw an increase.
• Smaller establishments (one to nine employees) saw a decrease in their quit rates and an increase in other separations rates. On the other hand, larger establishments (more than 5,000 employees) saw increases in their quit rates.

When examining which industries are currently hiring, the health care and social assistance and state and local government sectors are leading in job openings. However, contraction is seen in several sectors, including transportation and warehousing, and education. The retail trade and manufacturing industries also show reduced employee movement.

Despite the mixed labor market signals, do not let this dissuade your search for new opportunities or your next stellar hire. iHire can assist both job seekers and employers in achieving their objectives and thriving in the current market landscape.