US Bureau of Labor Statistics (BLS) JOLTS report

U.S. Job Openings Decline to 7.673 Million in July, Raising 50bps Rate Cut Expectations

Sep 4, 2024, 02:09 PM

The U.S. JOLTS Job Openings report for July showed a significant decline, with actual job openings at 7.673 million, falling short of the expected 8.1 million and the revised June figure of 7.91 million. This marks a notable decrease from the previous month's 8.184 million. The data indicates a weakening labor market, which has led to increased expectations of a more substantial rate cut by the Federal Reserve. Market reactions included a downtick, and short-term interest-rate futures jumped as a 50 basis points rate cut in September is now seen as more likely than a 25 basis points cut. Layoffs also rose to 1.76 million, further contributing to concerns about the labor market and economic outlook. The odds of a 50-basis-point rate cut at the September 18 FOMC meeting have increased, with US 10-year and 2-year yields challenging the 3.75% level.