The number of job openings held steady last month as hiring demand remained strong, new government data show.
May’s job openings were little changed at almost 7.6 million, from a downwardly revised 7.585 million, according to the Bureau of Labor Statistics on June 30.
Labor market resilience brought vacancies to the highest level since May 2024, exceeding economists’ expectations of 7.3 million.
Hiring demand was led by wholesale trade (71,000), accommodation and food services (62,000), and real estate and rental and leasing (40,000).
Conversely, the decline in vacancies was most pronounced in health care and social assistance (negative 115,000) and finance and insurance (negative 69,000).
Despite a series of headwinds—renewed price pressures and elevated interest rates—the U.S. job market has remained durable throughout the turbulence.
Additionally, companies continue to refrain from mass layoffs.
The number of layoffs and discharges was unchanged at 1.7 million, and the only industry to register sizable terminations was the arts, entertainment, and recreation sector (negative 42,000).
Over the past year, employers have kept their staffing levels little changed while monitoring the impact of artificial intelligence (AI), higher energy prices, and the administration’s economic policies.
However, a plethora of data suggests hiring momentum has been unfolding over the past three to four months.
Employees also felt slightly more confident about labor conditions as job quits ticked up to 3.065 million, from an upwardly adjusted 3.043 million.
The quits rate—a share of employed workers who voluntarily leave their jobs each month—was flat at 1.9 percent.
The upbeat figures diverge from various monthly business and consumer sentiment surveys, whether from the University of Michigan or the New York Federal Reserve, which show a more sour mood about the economy’s health.
The Conference Board’s latest Consumer Confidence Index, released on June 30, rebounded but came in below the consensus forecast.
Most notably, consumers downgraded their views of current employment conditions.
“Consumer appraisals of current business conditions were slightly more positive compared to last month. However, perceptions of the current labor market softened measurably,” Dana Peterson, chief economist at The Conference Board, said in a statement.
Almost 23 percent said jobs were “hard to get,” the highest since January 2021.
Consumers also expect little change to the U.S. labor market over the next six months.
June Jobs Report
The June jobs report will be released a day earlier this month, on July 2, due to the Fourth of July long weekend.
Appearing on Fox Business on June 20, Treasury Secretary Scott Bessent said he would not be surprised if it were a “very strong” report.
Early forecasts indicate that the economy created 110,000 new jobs and that the unemployment rate held steady at 4.3 percent.
These numbers would reinforce the view that the U.S. labor market is both slowing and resilient, says Jay Woods, chief market strategist at Freedom Capital Markets.
“After May’s surprisingly strong report, investors will be looking for confirmation that hiring remains healthy enough to support economic growth without reigniting inflation pressures,” Woods said in a note emailed to The Epoch Times.
The economy added a better-than-expected 172,000 jobs last month, driven by World Cup-related hiring, the healthcare industry, local government, and manufacturing.
But financial markets might prefer a “Goldilocks” nonfarm payrolls report, Woods added.
A hot number might raise the odds of higher interest rates to clamp down on inflation, while a lower number could suggest the economy is cooling off.
“For Federal Reserve Chairman Kevin Warsh, a labor market that remains firm alongside still-elevated inflation would strengthen the case for keeping policy restrictive, while signs of meaningful cooling in employment would give the Fed more flexibility to remain on hold and allow inflation to continue moving toward its target,” he said.
While a quarter-point rate hike in September remains the base-case scenario for markets, the chances have slightly diminished as global energy markets ease.
A barrel of U.S. crude oil has slumped to around $70 on the New York Mercantile Exchange.
Motorists have also experienced relief as the national average for a gallon of gasoline slipped below $3.85 on June 30.
The Cleveland Federal Reserve revised its forecast for June’s consumer inflation data, penciling in an annual rate of 3.9 percent and a monthly rate of negative 0.1 percent.
