MNI POLICY:Negative July Payrolls 'Plausible' As Openings Fall

U.S. job openings inched higher in July but fell short of expectations, signaling a slowdown in the labor market recovery after two months of solid employment gains, according to new data published Wednesday by online job marketplace Glassdoor.

Job openings reached 4.8 million in July, only marginally higher than June's 4.6 million and down 20% from pre-crisis levels, raising the risk of a "protracted recovery," according to Glassdoor's latest Job Market Report.

These numbers suggest the Bureau of Labor Statistics' July jobs report due Friday will show a "significant slowdown in the pace of recovery" following a gain of nearly 5 million jobs in June and nearly 3 million in May. While a net loss in payrolls is less likely, it is "alarmingly plausible," Glassdoor's senior economist Daniel Zhao wrote in the report.

FOOD, HOTEL OPENINGS FALL

Roughly 36% of employers posting jobs to Glassdoor reduced openings between June 22 and July 27, about equal to the proportion of employers who had posted new openings to the site during the same time frame.

Jobs openings in food and accommodation services were down 2.3% month-over-month, primarily driven by new Covid-19 outbreaks that put a swift end to indoor dining in some parts of the country and significantly reduced restaurants' total seating capacity.

In contrast, openings for jobs in health care were up 11.9% in July, according to Glassdoor, as rising Covid-19 case counts prompted providers to "hire aggressively."

Jobs supporting e-commerce, which has seen unprecedented growth since the onset of the pandemic, also grew in July, led by postings for positions in technology (+16.5%) and consumer services (+9.5%).