US job openings surge to nearly two-year high as labour market shows resilience

The US labour market showed renewed signs of strength in April, with job openings unexpectedly surging to their highest level in nearly two years, even as businesses grappled with higher energy costs and broader economic uncertainty.

Data released Tuesday by the US Bureau of Labor Statistics showed that the number of available jobs climbed to 7.6 million at the end of April, up sharply from 6.89 million in March.

The increase of 731,000 openings far exceeded economists' expectations of roughly 6.8 million positions and marked a reversal from two consecutive months of declines.

The latest Job Openings and Labor Turnover Survey (JOLTS) suggested that demand for workers remains healthy, offering reassurance that the labor market is not only stabilizing but may be entering a period of renewed expansion.

Demand for workers rebounds

The number and rate of job openings increased to 7.6 million and 4.6%, respectively, during April.

On an annual basis, job openings were up by 520,000 positions.

Much of the increase came from professional and business services, where openings rose by 668,000 during the month.

In contrast, vacancies in finance and insurance declined by 135,000.

The stronger-than-expected figures mark a notable shift from late 2025, when economists were increasingly concerned about labor market weakness as job creation slowed dramatically and monthly payroll gains approached zero.

Now, attention has increasingly shifted away from employment concerns toward inflation and the impact of rising prices on household finances.

Higher energy costs following geopolitical tensions in the Middle East have weighed on consumer sentiment, even as hiring demand remains relatively strong.

Layoffs remain contained

While job openings increased sharply, overall labor market activity showed a mixed picture.

The number of hires fell to 5.1 million in April, while total separations declined to 5 million.

Within separations, quits totalled 3 million and layoffs and discharges stood at 1.7 million, with both measures little changed from the previous month.

The stability in layoffs suggests employers remain reluctant to reduce headcount despite ongoing economic uncertainties.

Among smaller businesses employing between one and nine workers, job-opening rates increased while hiring and separation rates remained largely unchanged.

For larger employers with 5,000 or more workers, job openings, hiring activity, and layoffs showed little movement, although quit rates edged higher.

March data was also revised modestly.

Job openings were revised upward by 21,000 to 6.9 million, while hires were revised down by 19,000, and total separations were lowered by 1,000.

Structural shifts support labor market

Several factors have helped sustain labor market resilience this year.

Average monthly job growth from January through April stood at 76,000 positions, an improvement from the sluggish pace seen in late 2025.

Economists note that large tax refunds stemming from President Donald Trump's tax legislation last year provided a temporary boost to economic activity, helping offset the effects of rising energy prices following the escalation of tensions involving Iran earlier this year.

At the same time, the US economy no longer requires as many new jobs to maintain a stable unemployment rate.

A combination of lower immigration levels and ongoing Baby Boomer retirements has reduced labor force growth, meaning fewer workers are entering the job market.

Federal Reserve economists Seth Murray and Ivan Vidangos estimated in an April report that the so-called break-even level of job creation has fallen dramatically from roughly 155,000 jobs per month a few years ago to near zero today.

That shift helps explain why relatively modest payroll gains can still be consistent with a stable labor market.

Focus turns to May jobs report

Investors and policymakers will now look ahead to Friday's monthly employment report for additional clues about the labor market's trajectory.

Economists surveyed ahead of the release expect employers to add approximately 100,000 jobs in May, a figure that would continue to reflect moderate but sustainable employment growth.

For now, April's JOLTS report suggests that despite inflation concerns, higher energy costs, and fading fiscal stimulus, employers remain willing to hire, underscoring the resilience of the US labor market as the economy navigates a more challenging environment.