Job Market Normalizing: Implications for Workers

Job openings and layoffs have slightly decreased for another consecutive month in July, indicating a return to pre-pandemic labor market patterns. The drop in job openings is attributed to a decline in turnover rather than contraction, signaling a normalization of the labor market. Quits increased in state and local government education but declined in accommodation and food services and arts, entertainment, and recreation. The lower wage sectors experiencing decreased quit rates suggest that workers may not see other opportunities due to stagnant wage growth. Economists are monitoring indicators such as the Black unemployment rate, job growth for prime age workers, and nominal wage growth ahead of Friday's jobs report.