In a sign of a resilient labor market, employers in the United States expanded job openings beyond expectations in April, as both hiring and layoffs experienced increases, according to a report released on Tuesday.
The Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey revealed that there were approximately 7.4 million job openings in April, marking an increase of 191,000 from March and surpassing the economists’ consensus forecast of 7.1 million, as reported by FactSet. Year-over-year, job openings saw a decrease of 228,000, or roughly 3%.
The ratio of available jobs to unemployed individuals was recorded at 1.03 to 1, remaining stable compared to March.
Hiring surged during the month, rising by 169,000 positions to reach a total of 5.6 million, while layoffs fell significantly by 196,000 to 1.79 million.
The number of quits, which reflects worker confidence in job mobility, dipped by 150,000 to 3.2 million.
Jeffrey Roach, chief economist at LPL Research, commented on the data, stating, “The labor market is returning to more normal levels despite the uncertainty within the macro outlook. Underlying patterns in hirings and firings suggest the labor market is holding steady.”
This report precedes the Bureau of Labor Statistics’ upcoming nonfarm payrolls data for May, expected to be released shortly.
Economists anticipate job growth of 125,000 for May, a decline from the 177,000 reported in April, although this still points to a stable labor market. The unemployment rate is expected to remain unchanged at 4.2%.
In other economic developments, the Commerce Department disclosed that new orders for manufactured goods decreased more than analysts had predicted in April. New orders fell by 3.7%, exceeding the Dow Jones estimate of a 3.3% decline, which suggests weakening demand after a 3.4% rise in March as businesses sought to mitigate the impact of tariffs imposed by President Donald Trump.
Shipments also saw a decline, decreasing by 0.3%, while unfilled orders remained relatively stable, and inventories decreased slightly by 0.1%.
Federal Reserve officials are closely monitoring these economic indicators for insights into the broader economic environment. There are concerns that tariffs may lead to inflation and a slowdown in hiring, although such effects have yet to become evident in the hard data. In contrast, sentiment surveys reveal rising anxiety over these issues.
Atlanta Fed President Raphael Bostic shared, “For many sectors, I’m not hearing that the labor markets are changing in material ways. At the macro level, I haven’t gotten sort of a strong overarching picture or impression that things are moving in a significant way, and we’ll just have to see if that stays or whether something changes.”
Market expectations indicate that the Fed will maintain its benchmark borrowing rate in the range of 4.25% to 4.5%, where it has remained since December 2024. Additionally, traders predict that the Fed will not consider a rate cut until September, with Bostic indicating his support for a single reduction this year.
