Job openings at U.S. factories climbed to their highest level since January 2023, according to Labor Department data released Tuesday, even as actual hiring in the sector slowed from June’s pace.
The Job Openings and Labor Turnover Survey (JOLTS) showed manufacturing vacancies rose to 580,000 in July, up from 501,000 in June and well above the 428,000 openings recorded a year earlier. Within that total, durable goods manufacturers accounted for much of the increase, with openings jumping to 429,000 from 353,000 in June and 255,000 a year ago.
The rise in openings points to strong demand for American-made goods. Last week, the Commerce Department reported that durable goods orders rose 1.1 percent in July, more than double what economists had expected. Regional Federal Reserve banks in Kansas City, Dallas, New York, and Philadelphia have also reported robust growth in manufacturing activity in recent weeks.
Federal Reserve Chairman Kevin Warsh has said the broader labor market is close to full employment. The unemployment rate stands at a historically low 4.1 percent, and jobless claims are near their lowest levels in more than four decades. Layoffs fell to 1.666 million in July, one of the lowest totals on record outside the immediate post-pandemic period, with the layoff rate ticking down to 1 percent.
Even so, actual hiring in manufacturing fell in July. Manufacturers hired 288,000 workers, down from an unusually strong 330,000 in June. In durable goods specifically, hiring dropped to 177,000 from 208,000 the prior month. Despite the decline, July’s hiring numbers remained solid by historical standards.
Part of the gap between openings and hiring may reflect a shrinking pool of available workers. Labor force growth has slowed sharply over the past year and a half amid the Trump administration’s crackdown on unauthorized immigration. At the same time, aging baby boomers are leaving the workforce at a rate that matches or exceeds the number of younger workers entering it.
Across the broader economy, total job openings rose to 7.3 million from 7.2 million, while overall hiring fell to 5.05 million from 5.33 million. Openings increased in healthcare and social assistance, financial activities, and information, even as hiring declined in each of those sectors. Retail openings held steady while hiring in that sector fell.
The number of workers voluntarily quitting their jobs changed little, holding at 3.1 million, with the quits rate edging down to 1.9 percent. Economists read the steady quits figure two ways: it could suggest workers are less confident about finding better opportunities elsewhere, or it could reflect employers doing a better job retaining staff in a labor market where hiring remains difficult.
