July 2026 JOLTS Report: Job Openings Hold at 7.3 Million as Labor Market Stays in Low-Turnover Stalemate

The U.S. labor market entered the second half of 2026 in a holding pattern. The Bureau of Labor Statistics’ July 2026 Job Openings and Labor Turnover Survey (JOLTS) shows job openings little changed at 7.3 million, while hires and separations remained subdued. The hires rate slipped back to 3.2 percent, reinforcing what analysts describe as a low-turnover ‘new normal’ rather than a sharp downturn or rapid recovery.

Key Numbers

• Job openings: 7.3 million in July 2026, up slightly from a downwardly revised 7.2 million in June.
• Hires: 5.1 million, little changed from the prior month.
• Total separations: 5.1 million, little changed.
• Quits: 3.1 million, little changed; the quits rate was 1.9 percent.
• Layoffs and discharges: 1.7 million, little changed; the layoffs rate was 1.0 percent.
• Hires rate: 3.2 percent, down after a brief improvement and matching the low seen late last year.
• Year-over-year job openings change: Retail trade +155,000; manufacturing +152,000; leisure and hospitality -187,000.

Explanation

The JOLTS report is a monthly snapshot of labor demand and worker movement. Job openings count all positions that are open on the last business day of the month. Hires and separations count all additions and departures from employer payrolls during the entire month. Separations are split into quits, layoffs and discharges, and other separations such as retirements.

In July 2026, the headline numbers barely moved. Job openings edged up from June’s revised 7.2 million to 7.3 million, but the change was not statistically significant. Hires and total separations each held at 5.1 million. Within separations, quits (3.1 million) and layoffs and discharges (1.7 million) were also little changed. This combination points to a labor market that is neither rapidly adding nor shedding workers at an unusual pace.

The hires rate, which measures hires as a share of total employment, fell back to 3.2 percent. According to the Indeed Hiring Lab, the rate had begun to improve in recent months after bottoming out around 3.2 percent late last year, but it turned down again in July. That pattern suggests employers are cautious about adding staff, while workers are less willing to leave current jobs.

Analysts at ZipRecruiter described the data as a sign that market stagnation is once again taking hold as macroeconomic uncertainty rises. Low quits and low layoffs together indicate a wait-and-see environment: workers are staying put, and employers are not cutting deeply, but they are also not hiring aggressively.

Definition

The Job Openings and Labor Turnover Survey tracks four main concepts:

• Job openings: all positions that are open on the last business day of the month, including full-time, part-time, permanent, and temporary roles that the employer intends to fill immediately or in the near future.
• Hires: all additions to an employer’s payroll during the entire month, including new and returning employees.
• Total separations: all departures from an employer’s payroll during the month.
• Quits: voluntary separations initiated by employees; often seen as a measure of worker confidence.
• Layoffs and discharges: involuntary separations initiated by the employer.
• Other separations: retirements, deaths, and disability-related departures.

Why It Matters

JOLTS is one of the most closely watched labor market indicators because it captures both the demand for workers (job openings and hires) and the supply-side behavior of workers (quits). A high quits rate generally signals that workers feel confident they can find better jobs, while a rising layoffs rate can signal economic stress.

In July 2026, the quits rate of 1.9 percent and the layoffs rate of 1.0 percent were both low by historical standards. That combination is often called a low-churn labor market. It can be good for stability but also reflects reduced dynamism: fewer people are switching jobs, which can slow wage growth and career advancement.

For policymakers and businesses, the flat JOLTS data suggests the labor market is not the main source of inflationary pressure or recession risk. Instead, it is a neutral-to-soft backdrop that leaves the Federal Reserve and employers watching other indicators for direction.

Factors Behind the Trend

Several forces are keeping the labor market in a low-turnover equilibrium. Macroeconomic uncertainty, including questions about trade, fiscal policy, and the pace of technological change, has made both workers and employers more cautious. Workers are less likely to quit without a clear offer, and employers are less likely to post new positions unless demand is certain.

Industry-level shifts are also important. The Indeed Hiring Lab noted that retail trade and manufacturing posted the largest year-over-year increases in job openings, while leisure and hospitality saw the largest drop. That suggests a rotation from consumer-facing services toward goods-producing and distribution sectors, though transportation and warehousing openings fell, which could create bottlenecks.

There are few indications that major shifts are coming, but if any one force is likely to eventually break this stalemate, one way or another, it’s artificial intelligence. — Indeed Hiring Lab, September 1, 2026

ZipRecruiter’s analysis highlighted that durable goods manufacturing and wholesale trade saw spikes in job opening rates, while transportation, warehousing, and utilities saw a decline. Even if hiring picks up in manufacturing and wholesale trade, moving goods to market could be challenging if logistics hiring lags.

Year-over-Year Change

Compared with July 2025, job openings shifted unevenly across major industries. The table below shows the largest year-over-year changes reported by the Indeed Hiring Lab.

These shifts suggest that employers in goods-related industries are seeking more workers, while the post-pandemic boom in leisure and hospitality hiring has cooled. The decline in leisure and hospitality openings may reflect slower consumer spending growth or improved staffing levels after years of shortages.

Industry Ranking Table

ZipRecruiter’s analysis of job opening rates by industry found notable changes in July 2026. The table below summarizes the largest moves in job opening rates and hires rates by industry.

On the hiring side, construction (+0.6), mining and logging (+0.5), and arts and entertainment (+0.4) stood out with rising hires rates. These increases were exceptions in a month when hires decreased across most industries.

Trend Chart

The Indeed Hiring Lab published a line chart titled ‘The hires rate turned back down in July.’ It shows gross hiring as a percent of employment, both as a monthly rate and a three-month moving average, from January 2018 through July 2026. The chart illustrates that the hires rate had been improving in recent months after bottoming out at around 3.2 percent late last year, but it fell again to 3.2 percent in the latest reading.

Because actual charts cannot be rendered here, the key takeaway is that the hires rate has been range-bound near historic lows for more than a year. The brief upward movement earlier in 2026 did not hold, reinforcing the view that the labor market is stuck in a low-hiring equilibrium.

Historical Data

The July 2026 JOLTS release included a downward revision to June job openings, from an initially reported level to 7.2 million. July’s 7.3 million therefore represents only a marginal increase. The BLS characterized job openings, hires, and total separations as little changed for the month.

Longer term, the hires rate has been the most telling indicator. According to the Indeed Hiring Lab, the rate bottomed out at around 3.2 percent late last year, improved modestly in early 2026, and then fell back to 3.2 percent in July. This pattern suggests that the labor market’s low-turnover condition is not a one-month anomaly but a persistent feature of the current cycle.

Methodology

The JOLTS survey is conducted by the U.S. Bureau of Labor Statistics and covers a sample of nonfarm business establishments. Employers report the number of job openings on the last business day of the month, as well as the number of hires and separations during the entire month. Rates are calculated by dividing the level by total employment and multiplying by 100.

Data are published monthly with a lag of about one month. The July 2026 report was released on September 1, 2026. Figures are seasonally adjusted and subject to revision as more complete data become available. The BLS also publishes estimates by industry and by establishment size class.

Limitations of the Data

JOLTS is a survey, so its estimates carry sampling error. Month-to-month changes that appear small may not be statistically significant. The BLS uses the phrase little changed to indicate that a change is not outside the range of normal sampling variability.

The survey does not provide state-level detail, and it cannot explain why workers quit or why employers post or withdraw openings. It also does not capture the quality of jobs, wages, or working conditions. Finally, the data are revised as additional responses arrive, so initial readings can shift in later months.

Source & Data Date

Primary source: U.S. Bureau of Labor Statistics, Job Openings and Labor Turnover Survey News Release, USDL-26-1432, released September 1, 2026, covering July 2026 data. Additional analysis from Indeed Hiring Lab, ZipRecruiter Economic Research, and KPMG, all published September 1, 2026.