The number of job openings in the U.S. fell more than expected in July, tumbling to the lowest level in more than three years and representing the latest evidence that the labor market is cooling.

The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) report released Wednesday found there were 7.6 million job openings in July, the lowest level since January 2021 and below the 8.1 million openings expected by economists polled by LSEG.

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The report also revised down the number of job openings in June by 274,000 to 7.9 million, and the number of hires was revised down by 93,000 to 5.2 million for that month.

There were also a greater number of layoffs that occurred in June. The number was revised up by 62,000 to 1.6 million.

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The data signals the labor market is slowing down, increasing the likelihood and size of a widely anticipated rate cut by the Federal Reserve this month.

Federal Reserve Chairman Jerome Powell speaks during a news conference after a Federal Open Market Committee meeting at the Federal Reserve in Washington, D.C., on July 31. (Roberto Schmidt/AFP via Getty Images / Getty Images)

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“The JOLTS report ends up being another negative surprise regarding the state of the U.S. economy,” said Mark Hamrick, senior economic analyst at Bankrate. “This reinforces the current narrative of job market softening, including slower hiring and a rising unemployment rate.”