Job Openings Tick Up to 7.27 Million as Hiring Stays Steady

US job openings rose to 7.27 million in July and layoffs fell, but gross hiring slipped to 5.1 million as employers stay cautious amid an Iran-driven energy shock.

The Labor Department reported Tuesday that US job openings ticked up to 7.27 million in July from a revised 7.18 million in June. Its Job Openings and Labor Turnover Survey (JOLTS) also showed that layoffs fell. But gross hiring — the number of people hired before subtracting those who lost or quit their jobs — dipped to 5.1 million in July from 5.3 million in June. The number of people quitting their jobs also declined, a sign of confidence in their prospects.

The American job market is hardly booming, but it is ambling along despite an energy shock caused by the fighting with Iran that has squeezed family budgets. So far this year, US employers — companies, nonprofits and government agencies — have added an average of 61,000 net jobs a month, a figure dragged down by job losses in February and July. That is unimpressive, but it is an improvement on 2025, when job growth came in below 10,000 a month, the weakest hiring outside a recession since 2002, as the lingering effect of high interest rates and uncertainty caused by Trump's tariffs discouraged firms from hiring.

If US employers aren't hiring much, at least they aren't firing much either. The unemployment rate remains at a low 4.1%, and the number of people signing up for unemployment benefits has come in low week after week. "The labor market is back in the 'low fire, low hire' mode," said Heather Long, chief economist at Navy Federal Credit Union, in remarks carried by the Associated Press. "Companies are growing cautious as the war in Iran drags on and borrowing costs have spiked."

The surprise is the resilience. With an energy shock squeezing household budgets and borrowing costs spiking, many economists would expect openings to retreat and layoffs to climb. Instead, demand for workers edged higher while firings fell, suggesting firms are holding onto staff even as they pull back on adding new positions. The improvement over 2025's near-frozen hiring is notable given that uncertainty from tariffs and high rates has persisted into this year.

The stakes are high for both workers and policymakers. The Iran-driven energy shock is squeezing family budgets just as borrowing costs have spiked, making it harder for firms to justify expansion. A labor market stuck in low-fire, low-hire mode means fewer opportunities for job seekers even as existing workers enjoy unusual security. The path of hiring will also shape expectations around interest rates, since weak job growth coincides with tariff-related uncertainty that has already discouraged firms from taking on staff.

The Labor Department puts out its numbers on August hiring and unemployment on Friday. According to a survey of forecasters by the data firm FactSet, the report is expected to show that employers added 65,000 jobs last month and that the jobless rate ticked up to 4.2%.