U.S. job openings rise slightly in May as hiring stays weak

The Labor Department released May job openings data Tuesday: openings edged up by 9,000 to 7.594 million, while hiring fell by 45,000 to 5.170 million. Employers had vacancies that were still visible on paper but not turning into brisk staffing gains.

The job openings rate held at 4.6%, and the April openings figure was revised slightly lower to 7.585 million. Monthly revisions can reflect additional reports and seasonal-factor recalculations. Layoffs and discharges rose by 41,000 in May to 1.708 million, but the level remained historically low, reinforcing the picture of firms that are keeping people on payroll even as they move more cautiously on new hires.

JOLTS is meant to measure unmet demand for labor and labor shortages, so openings still point to employers that need workers. But the gap between openings and hiring suggests many companies are posting roles they are slow to fill, or unwilling to fill at the wages and conditions they are offering. Rising openings can mask a cooler labor market where workers feel less confident about finding something better, and ZipRecruiter Research put hiring flat at 3.3%.

That kind of labor market usually leaves wage growth under less pressure than it would in a hiring surge, because workers have fewer opportunities to push for higher pay when quits are muted and recruiters are not scrambling to replace people. The current strength is coming more from fewer layoffs and fewer people quitting than from a burst of new demand for labor.

The Federal Open Market Committee left its benchmark rate unchanged at 3.50% to 3.75% at its June 16-17 meeting, while its Summary of Economic Projections updated policymakers’ outlooks for growth, unemployment and inflation through 2028. Economists expect the June employment report to show 110,000 jobs added, down from 172,000 in May, with unemployment holding at 4.3% for a fourth straight month.

PNC chief economist Gus Faucher called the labor market “stronger than it was last year” and “pretty darn solid.”