U.S. April JOLTS Job Openings Unexpectedly Rise, Labor Market Recovery Still Uncertain

TradingKey – The U.S. labor market showed unexpected strength in April as the JOLTS job openings data came in higher than expected, offering some relief amid concerns over Trump’s escalated steel and aluminum tariffs. U.S. stock indexes rose on Tuesday. However, the report also highlighted ongoing risks of a slowdown in employment growth.

On Tuesday, June 3, the U.S. Department of Labor reported that job openings in April reached 7.391 million, exceeding expectations of 7.1 million. March’s figure was revised upward from 7.192 million to 7.20 million.

U.S. JOLTS Job Openings, Source: Trading Economics

Job openings increased in professional and business services, as well as healthcare and social assistance sectors, while they declined in manufacturing, leisure, and hospitality.

Economists noted that job openings data can be volatile on a monthly basis, but overall, the report offers meaningful insight. Over the past year, openings have remained steadily between 7 million and 8 million.

Economists from Oxford Economics stated that the risk of significant job losses has decreased following the initial wave of severe tariffs under the Trump administration. However, uncertainty surrounding trade policy is likely to affect business decisions—including hiring.

Some analysts pointed out that the improvement in the unemployment rate—rising slightly from 3.4% to 3.5%—may be temporary, especially with continued high levels of initial jobless claims.

Wells Fargo questioned whether the rise in job openings truly indicates that employers are ramping up hiring after a period of weakness.

The April JOLTS report also showed that hires rose to the highest level in a year, while layoffs climbed to the highest since October of last year. 

Notably, the number of voluntary quits declined, reflecting weaker confidence among workers about their ability to find new jobs.

The closely watched May Nonfarm Payrolls report, due this Friday, will provide further clarity on the health of the labor market. Markets expect 130,000 new jobs in May, down from the previous reading of 177,000. The unemployment rate is expected to hold at 4.2%, though there is a risk it could rise to 4.3%.