In a surprising turn of events, the number of available jobs in the US unexpectedly grew in May, indicating the resilience of the nation’s labor market.
According to the latest Job Openings and Labor Turnover Survey (JOLTS) report released by the Bureau of Labor Statistics on Tuesday, job openings increased to 8.14 million in May, up from a revised 7.91 million in April.
Economists had anticipated a decrease in job openings to 7.91 million, but the actual numbers surpassed expectations.
Despite the rise in job postings, the report highlighted a milestone for the US labor market as the ratio of job openings to unemployed individuals fell to 1.22 available jobs per job seeker, matching the figure from February 2020.
“The report was another sign that the labor market is holding firm,” said Robert Frick, corporate economist with Navy Federal Credit Union. “So far there are no indications that job growth will flag this year, so consumer spending power will continue to increase and the expansion looks solid.”
Additional measures of labor turnover showed continued stability in the US jobs market, which has remained strong in recent months.
The estimated number of hires increased to 5.76 million in May from 5.62 million in April, while layoffs and separations also rose to 1.65 million from 1.54 million. The number of voluntary quits slightly went up to 3.46 million from 3.45 million.
Although both hires and job openings rates saw an uptick in May, the quits rate and layoffs rate remained unchanged.
Economists are monitoring the quits rate closely, which has been steady at 2.2% for seven consecutive months. This rate serves as an indicator of workers’ willingness to explore the job market, which could lead to higher pay increases and potentially impact inflation.
This story is developing and will be updated as more information becomes available.
