US Job Openings Reach Highest Level in Two Years as Hiring Momentum Remains Weak

U.S. job openings climbed slightly in May, reaching 7.594 million, the highest level recorded since May 2024, according to the latest Job Openings and Labor Turnover Survey (JOLTS) released by the Labor Department. The figure was above economists' expectations of 7.30 million vacancies.

Even with the increase in available positions, hiring activity remained subdued. Employers hired 5.17 million workers during the month, down by 45,000 from April, while the hiring rate stayed unchanged at 3.3%. Economists said the combination of rising vacancies and slower hiring suggests the labor market continues to stabilize rather than accelerate.

There were approximately 1.04 job openings for every unemployed person in May, little changed from the previous month and slightly higher than the ratio recorded a year earlier.

The increase in openings was concentrated among businesses employing 10 to 249 workers. Industries including wholesale trade, leisure and hospitality, construction, and manufacturing reported additional vacancies. In contrast, job openings declined in healthcare and social assistance, finance and insurance, and transportation, warehousing, and utilities.

Consumer sentiment toward the labor market weakened in June. A survey by the Conference Board showed that 22.5% of respondents believed jobs were difficult to find, the highest share since January 2021, while the percentage of people who considered jobs plentiful remained nearly unchanged.

The report also showed layoffs rose modestly to 1.708 million in May, though they remained low by historical standards. Meanwhile, the quits rate held steady at 1.9%, indicating workers are still reluctant to leave their current jobs.

Economists expect the June employment report, scheduled for release later this week, to provide a clearer picture of hiring trends and whether the recent slowdown in recruitment continues.