The American job market is showing more signs of a slowdown. In June, employers posted 7.4 million job openings, down from 7.7 million in May, according to the Labor Department’s latest Job Openings and Labor Turnover Survey (JOLTS). It’s another signal that hiring appetite is softening as businesses navigate lingering economic uncertainty and rising costs.

Hiring fell slightly, and the number of workers quitting their jobs—often seen as a sign of confidence in finding better opportunities—dropped to its lowest level since December. Layoffs, however, remained largely unchanged and below pre-pandemic levels, indicating that while companies may be hesitant to hire, they’re also not rushing to cut staff.

The labor market’s cooling trend comes after a period of aggressive interest rate hikes by the Federal Reserve in 2022 and 2023 to combat inflation, along with fresh waves of uncertainty stirred by President Donald Trump’s new trade policies. These factors have made hiring managers more cautious.

Economists expect the upcoming July jobs report to reflect the same cooling trend, with the unemployment rate forecasted to edge up to 4.2%, and only 115,000 new jobs anticipated—down from 147,000 in June.

Though the numbers still reflect a relatively strong job market, the pace of growth is clearly slowing. So far in 2025, the economy has added an average of 130,000 jobs per month—well below the 168,000 monthly average of 2024 and far from the booming 400,000 monthly average seen during the post-COVID recovery years.

With fewer people quitting and hiring tapering off, the job market may be entering a new, more cautious phase—one where stability takes priority over expansion.