U.S. Job Openings Reach Two-Year High in May, Defying Forecasts
The Bureau of Labor Statistics reported nearly 7.6 million job openings in May, surpassing economists' expectations despite broader economic uncertainty.
The Labor Department's Job Openings and Labor Turnover Survey showed the number of U.S. job openings rose to about 7.6 million in May, a slight increase from April's 7.59 million and the highest level in two years. Economists had projected a near 10% decline to roughly 6.98 million, suggesting the April increase might have been an overstatement of demand.
Other labor market indicators, such as data from job-search platforms Indeed and LinkUp, have shown a downward trend in postings since early 2024, which analysts linked to higher energy prices and heightened uncertainty from the Middle East conflict. Pantheon Macroeconomics noted these factors in a recent note.
Despite the rise in openings, hiring activity remains muted, with the count of new hires falling for the third consecutive month, indicating a continued low-hire, low-fire environment.
"The April boost might not have been a blip, providing further evidence that the US labor market is not only stabilizing but also is poised for expansion," said economists at Pantheon Macroeconomics.
The report suggests the labor market is holding steady even as broader economic conditions remain uncertain.