U.S. job openings rose slightly to 8.1 million in May despite the impact of higher interest rates intended to cool the labor market.
Vacancies rose from a revised 7.9 million in April, the first reading below 8 million since February 2021, the Labor Department reported. April openings were marked down from an originally reported 8.1 million.
Layoffs rose to 1.65 million in May from 1.54 million in April. The number of Americans quitting their jobs — a sign of confidence in their prospects — was basically unchanged.
Defying expectations of a recession, the U.S. economy has kept growing and employers kept hiring.
But lately there have been signs the economy is losing some steam. Job openings have come steadily down since peaking at 12.2 million in March 2022. The job market is still strong. There are 1.25 jobs for every unemployed American, but that’s down from a 2-to-1 ratio.
From January through March this year, the economy grew at an annual pace of just 1.4%, slowest since spring 2022. Consumer spending, which accounts for around 70% of U.S. economic activity, expanded just 1.5% after advancing at a pace of more than 3% in each of the last two quarters of 2023.
The Labor Department reported that employers added 206,000 jobs last month, down from 218,000 in May. Unemployment increased slightly from 4% to 4.1%.
Source: Associated Press
