US Employers Post 7.8 Million Jobs In May/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. job openings unexpectedly rose to 7.8 million in May, signaling a sturdy labor market. Despite high interest rates and economic uncertainty, employers remain eager to hire. Analysts await Thursday’s jobs report for further insights into the market’s momentum.
US Job Market Stays Strong Quick Look
- Job openings in May climbed to 7.8 million from 7.4 million in April.
- Economists had forecast a slight drop to 7.3 million.
- Quits rose modestly, indicating worker confidence, while layoffs declined.
- Openings remain high compared to historical norms but below the 2022 peak.
- Hiring has cooled from the 2021-2023 post-pandemic surge.
- Higher interest rates and trade policy uncertainty weigh on the outlook.
- Friday’s jobs report is expected to show 117,000 new jobs added in June.
- The unemployment rate is forecast to inch up to 4.3%.
US Employers Post 7.8 Million Jobs In May
Deep Look
WASHINGTON (AP) — U.S. job openings unexpectedly rose in May, underscoring continued strength in the labor market despite high borrowing costs and economic policy uncertainty.
Employers posted 7.8 million job vacancies in May, up from 7.4 million in April, according to Labor Department data released Tuesday. Economists had anticipated a slight decline to around 7.3 million openings.
The number of Americans voluntarily leaving their jobs — a key indicator of confidence in finding new employment — edged higher, while layoffs declined.
Although job openings remain elevated by historical standards, they have eased significantly from a record peak of 12.1 million in March 2022.
The labor market has gradually cooled following the hiring boom of 2021-2023, when the economy roared back from pandemic shutdowns. That rapid rebound fueled inflation, prompting the Federal Reserve to raise interest rates 11 times between 2022 and 2023.
Higher borrowing costs have since put a damper on business investment and hiring. Additionally, President Donald Trump’s aggressive trade policies, including hefty tariffs on imports, have added uncertainty for employers assessing future labor needs.
Economists are looking ahead to Thursday’s monthly jobs report for further signals about the market’s momentum. The Labor Department is expected to report that the U.S. economy added 117,000 jobs in June, according to a FactSet survey. That would mark a slowdown from 139,000 jobs in May and an average of 168,000 per month in 2024.
The unemployment rate is forecast to edge up slightly to 4.3%, from 4.2% in May — still historically low by past standards.
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