U.S. job openings jump since 2021

The Bureau of Labor Statistics reported on June 2 that U.S. job openings rose to 7.618 million in April from 6.887 million in March, the largest monthly increase since 2021. The same report showed hires fell to 5.573 million from 5.601 million, leaving a wider gap between posted jobs and actual additions to payrolls. The April figures came from the Job Openings and Labor Turnover Survey, or JOLTS, which the Federal Reserve watches as a measure of labor demand. Economists said the split between openings and hires made the report harder to read as a clean sign of labor-market strength. ### How big was the April jump in openings? April job openings rose by 731,000 from the prior month, taking the total to 7.618 million, the highest level in nearly two years. March was revised to 6.887 million from about 6.9 million, according to BLS data. The increase was well above the recent run rate and was the biggest one-month gain since 2021, according to Reuters and other coverage of the release. (bls.gov) The job-openings rate also moved higher in April, while the level remained below the pandemic-era peak of more than 12 million reached in 2022. Federal Reserve officials and private economists use that series to gauge how much unmet labor demand remains in the economy. ### If openings rose, why didn’t hiring rise too? Hires slipped to 5.573 million in April from 5.601 million in March, according to the BLS release. (tradingeconomics.com) That left employers advertising more roles while bringing on fewer workers. Quits edged lower to a 1.9% rate, and layoffs and discharges eased to 1.1%, the report showed. ZipRecruiter economist Nicole Bachaud said the gap between openings and hiring pointed to a mismatch between the workers employers want and the workers available. (tradingeconomics.com) Indeed Hiring Lab economist Cory Stahle said the increase in openings was not evenly spread across the market and was concentrated among the largest establishments, which account for a small share of total openings. (bls.gov) ### Which employers appeared to be driving the increase? BLS said establishments with 5,000 or more employees showed little or no change in hiring rates in April, even as the broader openings count increased. Indeed Hiring Lab said openings at establishments with 5,000 or more workers stood 81% above their pre-pandemic level in April, far stronger than other size classes. The same analysis said those very large establishments accounted for less than 5% of all openings in the JOLTS data. (ziprecruiter-research.org) That pattern suggested the national increase may have been influenced by a narrow slice of employers rather than a broad-based acceleration in labor demand, according to Stahle. Reuters reported that economists cautioned the openings rise could overstate labor-market health and reflect mismatches or delayed hiring decisions rather than stronger demand. (bls.gov) ### What does the report say about worker confidence? The quits rate fell to 1.9% in April from March, according to the BLS release. Economists often treat quits as a sign of worker confidence because employees are more likely to leave voluntarily when they believe other jobs are available. Layoffs and discharges also moved lower, which indicated employers were not cutting staff aggressively even as hiring cooled. (hiringlab.org) That combination — fewer quits, fewer layoffs and softer hiring — pointed to a labor market that was still functioning but less fluid than the openings headline alone suggested. ### What comes next for markets and policymakers? (bls.gov) The Labor Department is due to publish the May employment report on June 5, giving investors a more current reading on payroll growth and the unemployment rate. The next JOLTS report, covering May, is scheduled for June 30, according to BLS calendars and coverage of the April release. Federal Reserve officials are expected to weigh both reports as they assess labor-market slack and inflation risks ahead of their June policy meeting. (bls.gov) (qz.com)