US job openings beat estimates, hold steady at 7.6M in May

US job openings held steady in May at a higher-than-expected level, reinforcing signs that the labor market remains resilient despite lingering uncertainty over economic growth and hiring.

The number of available jobs stood at 7.6 million in May, unchanged from the previous month but above economists' expectations of 7.3 million, according to the latest Job Openings and Labor Turnover Survey (JOLTS) released by the US Bureau of Labor Statistics on Tuesday.

The reading follows a sharp increase of 731,000 openings in April, which had pushed vacancies to their highest level since May 2024.

The latest figures indicate that labor demand has remained healthy, with available jobs continuing to outnumber unemployed workers.

Openings increase in wholesale trade; hiring and separation remain stable

The report showed little change across key labor market indicators.

Job openings did increase in wholesale trade by 71,000, marking one of the few sectors to register a meaningful gain during the month.

Hires remained unchanged at 5.2 million in May, with the hiring rate holding steady at 3.3%.

Hiring increased modestly in the federal government, where employers added 11,000 positions.

Total separations also remained stable at 5.1 million, with the separation rate unchanged at 3.2%.

The Bureau of Labor Statistics said separations were largely unchanged across industries.

Within separations, quits held steady at 3.1 million, keeping the quits rate at 1.9%.

Because quits typically reflect workers voluntarily leaving jobs, the measure is often viewed as a gauge of employee confidence in finding new employment opportunities.

Quits rose slightly in the federal government, increasing by 4,000 during the month.

Layoffs and discharges also showed little movement, remaining at 1.7 million with the rate unchanged at 1.1%.

One notable exception was the arts, entertainment and recreation sector, where layoffs declined by 42,000.

Claims data reinforce labor market strength

The JOLTS report adds to a series of recent indicators suggesting that the US labour market has regained stability after signs of slowing last year.

Last week's unemployment claims data also pointed to continued resilience.

Initial claims for state unemployment benefits fell by 12,000 to a seasonally adjusted 215,000 for the week ended June 20, according to the Labor Department.

Economists surveyed by Reuters had expected claims to total 225,000.

Although weekly claims have remained near the upper end of their 190,000 to 230,000 range this year, economists say there has been no meaningful deterioration in labor market conditions.

The data also indicate that employers have largely avoided widespread layoffs despite rising costs associated with the US-led conflict involving Iran.

At the same time, businesses continue to exercise caution on hiring, suggesting companies remain focused on balancing labor needs against an uncertain economic outlook while largely holding on to existing workers.