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lite.cnn.com - on gopher - inofficial | |
ARTICLE VIEW: | |
• | |
3 min read | |
Job openings unexpectedly increased in May | |
By Alicia Wallace, CNN | |
Updated: | |
11:49 AM EDT, Tue July 1, 2025 | |
Source: CNN | |
The “wait-and-see” is turning into a | |
“just-can’t-wait-anymore.” | |
US employers moved forward on plans to increase their workforces in | |
May, with the number of available jobs rising to a six-month high, | |
according to Bureau of Labor Statistics data released Tuesday. | |
Job openings, which serve as a closely watched measure of labor market | |
demand, totaled an estimated 7.77 million at the end of May, , | |
according to the BLS’ latest Job Openings and Labor Turnover Survey. | |
Economists were expecting the number of available jobs to retreat after | |
unexpectedly bouncing higher in April, reflecting an environment where | |
uncertainty has frozen some businesses in their tracks. Consensus | |
estimates were for job openings to total 7.3 million last month, | |
according to FactSet. | |
Instead, they rose for the second month in a row. | |
“Business leaders are put in a position now where they have to make | |
decisions in the short term,” Allison Shrivastava, an economist at | |
the Indeed Hiring Lab, told CNN in an interview. | |
Still, Shrivastava cautioned that monthly economic data can be quite | |
volatile (especially from survey-drawn reports like JOLTS that have | |
seen weaker response rates). Job postings tracked by Indeed have | |
remained fairly flat, she noted. | |
“I wouldn’t take this as a sign of blue skies ahead, by any | |
means,” she added. | |
‘Now hiring’ signs go up at restaurants, hotels | |
Some of the most substantial increases in job postings were at | |
restaurants and hotels, which saw a surge (+314,000) in advance of the | |
summer travel season after openings in that sector hit a low-water mark | |
in April. The finance and insurance industry also saw a sizeable | |
upswing in job openings, Tuesday’s data showed. | |
While in May — hiring rates were flat or down across most industries | |
— the accommodation and food services sector filled open jobs at a | |
pace last seen in the summer of 2023, a potential indication that | |
there’s optimism that consumers will still continue to spend, | |
especially in discretionary areas, despite broadening economic | |
uncertainty. | |
President Donald Trump’s sweeping policy moves — including | |
heightened tariffs, moves to reduce immigration, and reduction in | |
federal spending and workers — as well as increased geopolitical | |
tension, have injected incredible uncertainty into the US economy, | |
sending markets on a roller coaster ride, rattling consumers and | |
freezing some business decisions. | |
It may take some time for these moves, especially on immigration, to be | |
reflected in labor market data, Shrivastava said. | |
Tuesday’s data is the first in a series of critically important | |
economic metrics released this week about the labor market, culminating | |
with the June jobs report that’s due out on Thursday morning. | |
Economists are expecting job gains to slow from May, with an estimated | |
115,000 positions added in June, according to FactSet. They also are | |
forecasting that the unemployment rate will rise to 4.3% from 4.2%. | |
The monthly JOLTS report showed how US labor market turnover activity | |
is faring at a time when concern is growing that job growth may be | |
slowing too much. | |
“As tariff worries fade, businesses are adopting a more optimistic | |
view and are looking to bring on more workers,” Heather Long, chief | |
economist at Navy Federal Credit Union, wrote on Tuesday. “Hiring has | |
been stuck at unusually low levels for over a year. But there’s hope | |
the ‘white-collar job recession’ could finally end as finance and | |
insurance firms are posting more roles.” | |
Tuesday’s data showed that the labor market remains a bit gridlocked | |
as the churn seen in stronger economic times has slowed. The hiring | |
rate (as a percentage of total employment) continues to hover near | |
10-year lows. | |
The closely watched “quits rate,” which serves as both a gauge of | |
employee confidence as well as an indicator of future wage growth, was | |
2.1% in May, remaining well below the average rate of the past five | |
years. | |
However, despite the stalling in hiring and quitting, layoff activity | |
hasn’t significantly accelerated. | |
Layoffs fell in May to 1.6 million, staying below pre-pandemic levels. | |
The rate of layoffs remains near record lows, according to BLS JOLTS | |
data that dates back to December 2000. | |
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