In a noteworthy shift, job openings across the United States have plummeted to levels not seen since February 2021. The latest data, released on Tuesday by the Bureau of Labor Statistics, indicates a significant cooling in the labor market compared to the hiring frenzy that followed the reopening of the US economy post-pandemic.
The Job Openings and Labor Turnover Survey (JOLTS) for April highlighted that there were 8.05 million job openings at the month's end, a drop from March's revised figure of 8.35 million. Initially, March was reported to have 8.48 million job vacancies. Economists had forecasted April to have 8.35 million openings, making this a notable discrepancy.
The survey also revealed that 5.6 million hires were made in April, consistent with March's numbers, and the hiring rate remained stable at 3.6%. Additionally, the quits rate, often viewed as a barometer of worker confidence, stayed at 2.2%.
Investors are keeping a close eye on the JOLTS data as they search for indications that a reduction in labor demand could help control inflation, thereby strengthening arguments for the Federal Reserve to consider lowering interest rates, which currently stand at a 23-year high.
This report kicks off a highly anticipated week for labor market data, with updates from ADP on private-sector hiring and wage growth expected on Wednesday, jobless claims data due on Thursday, and the May jobs report on Friday. According to Bloomberg, the May report is anticipated to show a gain of 185,000 nonfarm payroll jobs, maintaining an unemployment rate of 3.9%. In comparison, April saw an addition of 175,000 jobs and a slight uptick in the unemployment rate to 3.9%.
