A government report on Tuesday showed that while the number of job openings reached the highest level in nearly two years in April, employment fell sharply, showing that demand in the labor market is increasing but hiring is slowing.
The Bureau of Labor Statistics reported that the number of job openings reached 7.6 million in the month, an increase of 731,000 from the previous month and the highest level since May 2024. Economists surveyed by Dow Jones were looking for 6.8 million job openings from the BLS job openings and turnover survey.
Due to the rapid increase in job openings, available jobs exceeded the total number of unemployed people. The ratio of job openings to the labor force rose by 0.4 points to 4.6%.
By industry, almost all of the job openings were in the professional and business services sector, which added 668,000 positions, which could indicate the impact of artificial intelligence on labor demand. Health care and social assistance, the biggest driver of job creation, increased by 89,000. Financial activities decreased by 134,000 people. Most other categories reported little change.
The number of job openings has increased rapidly, but the hiring rate has declined.
In the same month, companies employed a total of 5.12 million workers, a decrease of 419,000 from March, and the employment rate was 3.2% (down 0.3 points). However, layoffs and layoffs also fell slightly, falling by 192,000 to 1.7 million. The number of job departures, which measures worker mobility and confidence in finding a new job, fell by 183,000 to just under 3 million, the lowest level since August 2020.
Broadly speaking, the report reflects the continued low employment, low layoff environment that has characterized the labor market since the beginning of 2025. Weekly unemployment claims have remained low except for a brief spike, while the unemployment rate has remained little changed at 4.3%.
Fed officials are monitoring the JOLTS numbers for signs of labor slack. Central bankers spent much of last year worrying about a weak labor market, but have since shifted their concerns to the inflationary impact of rising tariffs and energy prices. The Federal Reserve meets later this month and is widely expected to keep interest rates on hold.
