America's job market is flashing a new warning sign

The U.S. labor market isn't in good shape for people seeking out new jobs.

The number of unemployed people surpassed job openings in July, according to data from the Bureau of Labor Statistics released on Wednesday. Job openings totaled 7.18 million in July while there were 7.2 million unemployed workers.

It's the latest warning sign from a labor market that has softened in recent months. Analysts say that uncertainty stemming from President Donald Trump's tariffs have made employers hesitant to hire and likelier to put their expansion plans on ice.

Heather Long, chief economist at Navy Federal Credit Union, described the lack of hiring as "another crack in the labor market."

"It's not healthy to have so little hiring. It's not dynamic," Long wrote in a social media post. "People can't grow in their careers. This is a frozen job market."

The weakened state of the job market will have spillover effects on U.S. workers. Allison Shrivastava, an economist at Indeed, said fewer job openings generally leads to "slower wage-growth for job switchers, limited opportunities and slower innovation."

The U.S. economy is flashing other warning signs as well. Unemployment for Black Americans reached 7.2% in July, the highest level in almost four years.

On Friday, the BLS will release its latest monthly report detailing the state of hiring in August. It'll be the first report since Trump fired BLS Commissioner Erika McEntarfer over standard revisions that displayed much weaker summer hiring than initially thought.

Scarce hiring is starting to weigh on policymakers. In August, Federal Reserve Chair Jerome Powell opened the door to an interest rate cut at the September meeting of the Federal Open Market Committee, the panel tasked with adjusting the cost of borrowing. A lower interest rate typically stimulates economic activity through cheaper consumer and business borrowing.