Job openings climbed to their highest level in nearly two years during April, while hiring fell sharply in the same period.
The Bureau of Labor Statistics reported that available employment reached 7.6 million for April, a surge of 731,000 from the prior month and the highest level since May 2024.
Economists surveyed by Dow Jones had forecast 6.8 million openings from the BLS Job Openings and Labor Turnover Survey, making the result a significant beat.
The jump in openings pushed available jobs above the total number of unemployed workers, with the rate of openings relative to the labor force rising 0.4 percentage point to 4.6%.
Nearly all of the gains came from the professional and business services category, which added 668,000 positions, a possible indicator of the impact from artificial intelligence on labor demand.
Health care and social assistance added 89,000 openings, while financial activities saw a decline of 134,000, with most other categories reporting little change.
Companies hired a total of 5.12 million workers during April, a decline of 419,000 from March, taking the hiring rate down 0.3 percentage point to 3.2%.
Layoffs and discharges fell slightly as well, declining 192,000 to 1.7 million, while quits dropped to just under 3 million, down 183,000 and the lowest level since August 2020.
“For now, the labor market remains mostly stable,” said Matthew Martin, senior U.S. economist at Oxford Economics, adding that “neither employees nor employers are in a hurry to make moves.”
Martin also warned that “the US/Israel-Iran war will test the labor market,” noting that “weaker household spending and uncertainty are likely to influence firms’ hiring intentions.”
The report broadly reflects the continuing low-hire, low-fire environment that has characterized the labor market since early 2025, with weekly jobless claims holding low and the unemployment rate barely budging at 4.3%.
Federal Reserve officials closely monitor the JOLTS numbers for signs of labor slack, and the Fed meets later this month and is widely expected to hold interest rates steady amid concerns over tariff-driven inflation and soaring energy prices.
