With Wall Street on edge about Friday's jobs report, new data confirms the economy has the fewest job openings in nearly

With Wall Street on edge about Friday’s jobs report for August—the first since July’s shocker, which included a massive downwards revision of jobs growth for May and June—it got another jolt on Wednesday. The JOLTS survey, a closely watched indicator of job openings and quits, confirmed the U.S. economy now has the fewest job openings in nearly a year, a clear sign that hiring momentum continues to cool.

Job openings for July noticeably slid to 7.18 million, down from June’s (revised downward) 7.36 million and sharply lower than consensus expectations. The openings rate also edged down to 4.3% as businesses scale back recruiting amid growing economic uncertainty. The most impacted industries include health care, arts and recreation, and mining, while regional drops were led by the South and Northeast.

Markets eye Friday’s jobs data

This weaker JOLTS report comes as investors brace for the monthly employment update, a critical catalyst in setting the tone for Federal Reserve policy and market sentiment. Earlier on Wednesday, Bank of America Research analysts warned the U.S. labor market was slowing due to supply-side factors including immigration restrictions, which have dampened the pace of hiring and lifted unemployment slightly since earlier this year.

Stocks fell on Tuesday to open trading for the month of September, after the Labor Day holiday, followed by a global bond sell-off on Wednesday morning ahead of the JOLTS release. Other evidence of investors fleeing to safety was gold hitting a record high. Swiss investment bank UBS argued on Tuesday that September is a seasonally weak month for equities, noting that September has been the worst-performing month for the S&P 500 over the past decade, with average returns of roughly -2%. In six of those past 10 years, the index has declined, it added.

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