Job openings fell more than expected in April, suggesting the labor market may be weakening and could provide more impetus for the Federal Reserve to start cutting interest rates.
Labor Department Job vacancy and labor turnover surveys Data show that the number of job openings fell to 8.06 million that month, a decrease of nearly 300,000 from March and a decrease of nearly 19% from the same period last year.
Additionally, the total hit its lowest level since February 2021.
As Fed officials look for direction on monetary policy, they closely monitor the JOLTS report for signs of labor market weakness. Policymakers kept benchmark interest rates at a 23-year high, awaiting more convincing evidence that inflation is returning to the central bank’s 2% target. Market pricing points to a first interest rate cut in September.
While vacancies fell, there was a slight increase in hiring, as well as a slight increase in separations and resignations, suggesting employees are confident in their ability to move to other roles.
By industry, the information technology industry saw the largest decline in the percentage of job vacancies, down 1.3% for the month. The two fastest growing employment sectors, healthcare and leisure and hospitality, saw significant declines in job openings, down 0.8% and 0.6% respectively.
This report from the U.S. Bureau of Labor Statistics kicks off an important week of labor-related data.
On Wednesday, ADP will release its private payrolls estimate for May, with Dow Jones forecasting 175,000 jobs in May, down from 192,000 in April. Weekly data on jobless claims will be released on Thursday. Then on Friday, the Bureau of Labor Statistics will release its key May nonfarm payrolls report, which is expected to show an increase of 190,000, compared with 175,000 the previous month.
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