In June, US job openings fell to the lowest level in more than two years, raising concerns about the tight labor market conditions. The report from the Labor Department indicates that while the

labor market remains resilient, workers seem to be growing less confident, with resignations dropping by the most since April 2020.

The data suggests that fewer workers changing jobs could slow wage growth and overall inflation. Despite the decline in job openings, the labor market is still tight, with 1.61 job openings for every unemployed person in June. Economists believe that this strength in the labor market could keep the Federal Reserve cautious and maintain elevated interest rates for some time.

However, the lower number of job openings may also indicate that the economy is heading towards a "soft landing" rather than a recession, which aligns with recent data showing a subsiding inflation rate in June. The US central bank has been raising interest rates in recent months, but many economists do not expect further hikes in the current tightening cycle. The upcoming employment and inflation data will play a significant role in shaping the Fed's future decisions. Photo by Phil Whitehouse, Wikimedia commons.