US job openings slip to 7.4 million, but labor market remains resilient
in face of fighting in Iran
[August 05, 2026] By
PAUL WISEMAN
WASHINGTON (AP) — U.S. job openings fell slightly in June, but the labor
market continued to show resilience in the face of an economic shock
from fighting in Iran and the closure of the Strait of Hormuz.
Employers posted 7.36 million vacancies in June, down from 7.54 million
in May, the Labor Department said Tuesday. The numbers were in line with
economist expectations. Openings rose by 97,000 at warehouse,
transportation and utility companies and 39,000 at federal government
agencies. Openings dropped at wholesalers and manufacturers of
nondurable goods.
Layoffs were little-changed at 1.8 million, and the number of people
quitting their jobs — a sign of confidence in their prospects — rose
slightly.
The gross number of people hired — before subtracting those who quit or
lost their jobs — rose slightly 5.3 million. But hiring is weaker than
it was in the jobs boom that followed pandemic lockdowns. Then, gross
monthly hiring often topped 6 million.
Still, the U.S. job market has remained sturdy despite a surge in energy
prices caused by the conflict in Iran, rebounding from a 2025 slump.
Before the war in Iran, roughly 15 million barrels of Persian Gulf oil
were shipped each day through the Strait of Hormuz. The strait borders
Iran, which has fired on ships attempting to transit the passage.
[to top of second column] |
A now hiring sign is seen in front of an auto body shop in
Chicago, June 25, 2026. (AP Photo/Nam Y. Huh, file)
 So far this year, companies,
government agencies and nonprofits have added an average 92,000 jobs
a month. That is up from fewer than 10,000 a month last year —
fewest outside a recession since 2002 — as employers held off on
hiring because of high interest rates and uncertainty caused by
President Donald Trump’s unpredictable economic policies.
When the Labor Department releases its jobs report
for July on Friday, it is expected to show job gains of 100,000, up
from 57,000 in June. The unemployment rate is expected to have
remained at a low 4.2%, according to a survey of forecasters by the
data firm FactSet.
In years past, 100,000 new jobs a month would have been mediocre.
But Trump’s immigration crackdown and the ongoing retirements of
baby boomers mean that fewer people are competing for work. So the
economy doesn’t need as many new jobs as it once did to keep the
unemployment rate from rising. In fact, some economists believe the
“break-even″ rate could be nearly as low as zero jobs.
All contents © copyright 2026 Associated Press. All rights reserved |
