Job openings unexpectedly edged up in August.

U.S. job openings saw an unexpected slight increase in August, suggesting some resilience in labor demand during the third quarter. According to the closely-watched Job Openings and Labor Turnover Survey (JOLTS), the number of available positions—a key indicator of labor demand—rose to 8.04 million at the end of August, up from a revised 7.711 million in July. Economists had anticipated a modest decline to 7.64 million.

In July, job openings had dropped to their lowest level in three and a half years, which was interpreted as a sign of a gradual slowdown in the U.S. labor market.

These numbers come on the heels of remarks from Federal Reserve Chair Jerome Powell, who indicated on Monday that the Fed would likely return to smaller, quarter-point interest rate adjustments going forward. However, he emphasized that future changes to borrowing costs are not predetermined.

Powell added that the Federal Open Market Committee (FOMC) is not in a rush to cut rates quickly, despite implementing a significant 50-basis-point reduction during its September 17-18 meeting. He defended this decision, citing the FOMC’s growing confidence that recalibrating monetary policy would sustain labor market strength while promoting moderate economic growth and a steady decline in inflation toward the 2% target.

He further stated that the broader economy remains “in solid shape” and reaffirmed the Fed’s commitment to using its tools to maintain stability. Speaking at an event in Tennessee, Powell indicated that two more rate cuts—totaling half a percentage point—could be justified by the end of 2024, provided the economy continues to perform as expected.

On Tuesday, the Institute for Supply Management reported that the manufacturing purchasing managers’ index (PMI) for September registered at 47.2, consistent with August’s reading. Analysts had expected the figure to be slightly higher at 47.6. A PMI below 50 indicates a contraction in the manufacturing sector.

The non-manufacturing PMI, which emphasizes the important services sector, is scheduled for release on October 3 and is projected to rise slightly to 51.6, up from 51.5 the previous month.