The number of job openings unexpectedly increased in April to the highest level since May 2024, showing that the labor market has some underlying strength.
The Tuesday morning update to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey showed that job openings increased from 6.9 million in March to 7.6 million in April. Job openings had largely declined since peaking in March 2022, with a recent low of 6.6 million notched in December.
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The reading was much higher than anticipated. Most economists were expecting job openings to remain static, not rise by 731,000.
“This report tells us that openings remain ample in a time of full employment,” Carl Weinberg, chief economist for High Frequency Economics, wrote in a note on the report. “That suggests that labor availability is throttling employment.”
Still, other details from Tuesday’s report were not as encouraging. The number of hires in April decreased by 419,000 to 5.1 million, and the rate of hiring was at 3.2%, according to the JOLTS report. The survey reports gross hiring and firing, rather than the more widely cited net figures in the monthly jobs reports.
The “quits rate” measures the share of people who voluntarily left their jobs and includes those who left their previous employment for another job and people who quit but are confident they will soon find new employment. This rate fell slightly to 1.9%. It has been flat over the past several months, but it suggests that people are holding on to the jobs they have.
Energy prices have shot up in recent months because of the war with Iran. Before the war, a barrel of oil was about $65. Now, it is more than $90.
Those higher energy prices are, in turn, pushing up headline inflation well beyond the Federal Reserve’s 2% goal.
The personal consumption expenditures price index, the most closely watched inflation gauge, rose to 3.8% for the year ending in April.
The Fed is facing a tricky calculus. President Donald Trump has long been pushing for lower interest rates, but with inflation rising, many economists are expecting the Fed to hold off on cuts this year — or even raise interest rates.
The stronger JOLTS report, which shows strength in the labor market, gives the Fed a bit of support in keeping rates higher for longer.
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Also, employment has continued to grow.
The Bureau of Labor Statistics reported that 115,000 jobs were added in April, well above what forecasters were expecting. The unemployment rate also held steady at a relatively low 4.3%.
