Summary:
- Job openings in the U.S. increased to 8.1 million in May, up from 7.92 million in April, but still the second lowest in three years.
- Total separations rose slightly to 5.4 million, close to three-year lows.
- The job market now resembles 2019 levels, aligning with Federal Reserve goals.
In a surprising turn, job openings in the U.S. rose slightly to 8.1 million on the last business day of May, up from 7.92 million in April, according to the latest report from the Bureau of Labor Statistics. This was better than economists had projected. They thought job openings would hold around 7.91M. Despite the increase, this figure remains the second lowest in the last three years, indicating a still cautious labor market.
Rise & Fall: The month was bolstered by gains in government jobs, with state and local government (excluding education) rising by 117,000 openings, durable goods manufacturing increasing by 97,000, and the federal government adding 37,000 positions.
- Job openings plummeted by 147,000, signaling challenges in these industries. Also saw a drop, with a decrease of 34,000 openings.
Total Separations: The number of total separations in May rose slightly to 5.4 million, marking an increase for the second consecutive month, yet still close to three-year lows.
- The number of quits, a key indicator of worker confidence, fell slightly to 3.46 million in May, down from 3.51 million in April. This figure has remained relatively stable within the range observed over the past six months.
What They’re Saying: Heather Long of The Washington Post highlighted the similarities between the current job market and that of 2019. On Twitter, Long noted, “The job market now looks very similar to 2019. This was Fed Chair Powell’s goal. Total hires per month v. similar. Total quits per month v. similar. Job openings per unemployed = nearly the same as the 2019 average (0.84).”
