Weekly economic review for the week ended September 5, 2025
US job openings dip below job seekers for first time since pandemic
According to the Labour Department’s ‘Job Openings and Labour Turnover Survey’ (JOLTS), job openings in the US, a key measure of labour demand, fell by 176,000 to 7.181 million at the end of July. This decline was steeper than economists’ expectations, who had projected a drop to 7.375 million from previously reported 7.437 million in June.
July’s figure marks the lowest since September 2024. A Reuters poll had forecasted 7.378 million vacant positions. The job openings rate edged down to 4.3% from 4.4% back in June. US job openings fell to a 10-month low in July with unemployed individuals outnumbering available positions for the first time since the COVID-19 pandemic. The ratio of job openings to job seekers dropped to 0.99 from 1.05 in June, marking a dip below the 1.0 mark since April 2021.
Meanwhile, retail sales growth in the eurozone weakened in July, falling short of forecasts. The latest data from Eurostat has raised concerns whether robust domestic consumption could continue to buffer the region’s economy against the impact of US tariffs.
Retail sales across 20 eurozone countries declined by 0.5%, falling short of the anticipated 0.2% drop. Compared to the same month last year, sales rose by 2.2%, slightly below the 2.4% increase projected by economists in a Reuters poll. Sales of food, beverages and tobacco fell 1.1%, reversing the 0.6% growth seen in June.
At the same time, non-food product saw a modest rise of 0.2% down from 0.6% gain the previous month. Automotive fuel sales in specialised outlets slid 1.7%, erasing June’s 0.8% increase.
Year-on-year retail growth slowed to 2.2% in July from 3.5% in June.
Finally, US job growth slowed dramatically in August, with non-farm payrolls rising by just 22,000, well below economist expectations of 75,000, following a previously reported gain of 73,000 in July.
Meanwhile, the unemployment rate increased to 4.3% from 4.2% in July, signalling a softening labour market largely driven by reduced hiring amid President Donald Trump’s sweeping import tariffs and immigration restrictions. Private sector employment grew by 38,000 jobs, led by a gain of 46,800 jobs in healthcare and social assistance, while federal government employment declined by 15,000 jobs.
The weak report strenghtens the case for a Federal Reserve interest rate cut at its upcoming meeting. Fed chair Jerome Powell acknowledged rising labour market risks but also noted that inflation remains a concern. On August 22, Powell said: “Overall, while the labour market appears to be in balance, it is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers.”
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