Labor market shows positive signs as job openings and layoffs decline in June

Job vacancies and layoffs declined in June, indicating a stable labor market. The number of job openings decreased to 9.58 million, the lowest level since April 2021, while layoffs nudged down to 1.53 million. The decline in both job openings and layoffs suggests a slowing demand for labor, aligning with the Federal Reserve's efforts to slow the economy and inflation. The manufacturing sector, however, reported declines in job openings and hires, indicating ongoing contraction. Economists are closely watching these indicators as they anticipate the release of the ADP private sector hiring report, weekly jobless claims, and the nonfarm payrolls report later in the week.