U.S. job openings rose by more than anticipated in May, according to a closely watched survey from the Labor Department.
Available roles, a proxy for labor demand, stood at 7.594 million during the month, compared to a downwardly revised total of 7.585 million in April and economists’ estimates of 7.280 million. It was the highest level in two years.
The number and rate of hires versus a year ago were unchanged at 5.2 million and 3.3%, respectively, the Bureau of Labor Statistics said in its Job Openings and Labor Turnover, or JOLTS, report.
The quits rate — a gauge of workers’ willingness or ability to leave jobs — also came in at 1.9%, equaling April’s pace.
Meanwhile, the vacancy-to-unemployment ratio, a preferred metric of labor market slack, remained at 1.0 but has been slowly inching upward since February, analysts at CIBC Economics said in a note.
“This report confirms that the U.S. labor market remains to be broadly balanced,” the analysts including Helen Lao wrote.
Tuesday’s figures serve as a precursor to the all-important U.S. employment report due out later this week, which could factor into how the Federal Reserve calibrates interest rates over the coming months. The U.S. economy is projected to have added 114,000 jobs in June, versus 172,000 in the previous month.
Policymakers at the Fed opted to leave interest rates unaltered at a meeting earlier this month, with officials keen to be in a position to corral inflationary pressures stemming from an energy shock sparked by the Iran war. The Fed, which is tasked with both keeping a lid on inflation and promoting maximum employment, is currently tipped to lift interest rates before the end of 2026.
Elsewhere, a tracker of American consumer confidence from the Conference Board edged up to 91.2 from 90.6 previously, reflecting emerging optimism that the long-term consequences of the Iran conflict seem to be fading and gasoline prices are moderating.
Source: Investing.com