US Job Openings Drop to 8.1 Million, Lowest Since 2021
Job openings in the United States fell to their lowest level since February 2021, according to data from the Bureau of Labor Statistics. The number of available positions dropped to 8.059 million in April, down from a downwardly revised 8.36 million in March. This marks the second consecutive month of declining job openings and indicates a cooling labor market. Economists had expected the job openings to register at 8.46 million.
The survey also showed that 5.6 million hires were made in April, a figure largely unchanged from March. This slowdown in labor demand suggests that inflation pressures might ease, potentially influencing the Federal Reserve to reconsider interest rate hikes. The upcoming May jobs report is anticipated to show the addition of 185,000 nonfarm payroll jobs, with the unemployment rate expected to remain steady at 3.9%.
Despite the drop in job openings, layoffs have decreased and the number of Americans quitting their jobs has risen. This complex labor market dynamic comes amid high interest rates and signs of a slowing economy. Consumer spending, which constitutes a significant portion of U.S. economic activity, also grew at a slower annual pace. The Federal Reserve's plans to cut its benchmark rate have been delayed due to persistent inflation above the central bank's 2% target.
