U.S. job openings stayed nearly unchanged last month, reflecting a labor market that is steady but showing signs of slowing, according to the Associated Press (AP).

The Labor Department reported Tuesday that job openings increased to 7.23 million in August from 7.21 million in July. Economists had expected a decline to 7.1 million. The monthly Job Openings and Labor Turnover Survey, known as JOLTS, also showed that layoffs fell. However, the number of people quitting their jobs also dropped, often seen as a measure of workers’ confidence in finding better opportunities. The report’s gauge of hiring was the weakest since June 2024.

Job openings remain higher than historical averages but have steadily fallen since hitting a record 12.1 million in March 2022, when the economy was bouncing back from COVID-19 shutdowns. The labor market has cooled this year, partly due to lingering effects of 11 interest rate hikes in 2022 and 2023 and uncertainty tied to the country’s current federal trade policies, which analysts say is making employers cautious.

Unemployment is still low at 4.3%, and workers with jobs are generally not being laid off. But those seeking work are facing more difficulty.

 “Companies are clearly hoarding workers with the economy still at full employment,” Carl Weinberg, chief economist at High Frequency Economics, wrote in a statement. “It will take a bigger blow than what we have seen so far to convince companies that it is safe and prudent — and necessary — to lay off workers.”

Earlier revisions showed the economy added 911,000 fewer jobs than first reported in the year ending in March. Since then, job creation has slowed further, averaging 53,000 a month. The government’s next monthly jobs report, due Friday, could be delayed by the recent shutdown that took place on Wednesday.