Job openings unexpectedly rose in May to hit the highest level since November 2024, according to government data released Tuesday. The report comes as investors closely watch for any signs of slowing in the labor market amid a debate over when the Federal Reserve could cut interest rates again.
New data from the Bureau of Labor Statistics showed 7.76 million jobs open at the end of May, an increase from the 7.39 million seen the month prior. The April figure was revised higher by 4,000 openings. Economists surveyed by Bloomberg had expected Tuesday’s report to show 7.3 million openings in May.
The Job Openings and Labor Turnover Survey (JOLTS) also showed that 5.5 million hires were made during the month, down from the 5.61 million made during April. The hiring rate ticked lower to 3.4% from the 3.5%. In one sign that workers remain cautious about labor market conditions, the quits rate, a sign of confidence among workers, moved up to 2.1% from 2% in April.
Still, both the hiring and quits rates are hovering near decade lows, reflecting what economists have described as a labor market in “stasis.”
“Hiring remains depressed, but that is less worrisome than it would be otherwise because layoffs continue to be low,” Oxford Economics lead US economist Nancy Vanden Houten wrote in a note to clients.
The latest JOLTS data comes as investors continue to watch economic data for any signs of impact from President Trump’s tariffs. In May, the labor market showed some signs of cooling with the US labor market adding 139,000 jobs while the unemployment rate held steady at 4.2%.
Tuesday’s data comes ahead of another update on the labor market expected for release on Thursday morning. Consensus expects the June jobs report to show hiring slowed further, with nonfarm payroll additions projected to fall to 110,000 and the unemployment rate expected to tick higher to 4.3%.
As of Tuesday, markets were pricing in a roughly 23% chance the Fed will cut interest rates at its July meeting and a 96% chance that at least one cut happens by the end of its September meeting, per the CME FedWatch Tool.
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
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