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Job openings and new hires unexpectedly rise in May as labor data stabilizes ahead of June jobs report
Job openings unexpectedly rose in May as investors was alert to new signs of cooling in the job market after data last month showed that open jobs in the U.S. fell to a three-year low.
New data from the Bureau of Labor Statistics released Tuesday showed there were 8.14 million job openings at the end of May, up from 7.92 million in April.
The April figure was revised down from the 8.06 million job openings initially reported. Economists surveyed by Bloomberg had expected the report to show 7.95 million jobs added in May.
The data comes as the labor market has become more focused in recent weeks, with weekly jobless claims rising and the unemployment rate steadily rising. economists are cautious that cracks may be forming beneath what would otherwise be seen as a strong job market.
But Tuesday’s data did little to show that the outcome is fast approaching.
The Job Openings and Labor Turnover Survey (JOLTS) also showed that 5.8 million new hires were made during the month, a slight increase from April. The hiring rate remained at 3.6%, unchanged from April. Also in Tuesday’s report, the layoff rate, a sign of confidence among workers, held steady at 2.2%.
Meanwhile, the ratio of job openings to unemployed workers held steady at 1.2, in line with pre-pandemic levels, supporting the idea that the labor market appears to be normalizing rather than cooling off completely for now.
In a speech On June 24, San Francisco Fed President Mary Daly noted that the labor market is moving toward a point where a “benign” slowdown outcome may be less likely. Daly noted that further declines in job openings would likely come with a rise in the unemployment rate.
At least in the May data, that fear was not fueled, as the job vacancy rate rose to 4.9% from 4.8% the previous month.
“At this point, inflation is not the only risk we face,” Daly said. “We will need to keep our eyes on both sides of our mandate — inflation and full employment — as we work to achieve our goals.”
Friday will bring the next major labor market update with the Bureau of Labor Statistics’ nonfarm payrolls report.
The report is expected to show that 195,000 nonfarm jobs were added to the U.S. economy in June, with unemployment holding steady at 4%, according to Bloomberg data.
Bank of America economist Michael Gapen argued that a report along these lines would continue to show a labor market that is “cooling, but not cold.”
More than 75 employers were accepting resumes and talking to potential new hires at a career fair in Lake Forest, Calif., on Wednesday, Feb. 21, 2024. (Paul Bersebach/MediaNews Group/Orange County Register via Getty Images) (MediaNews Group/Orange County Register via Getty Images via Getty Images)
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
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