WASHINGTON, June 2 (Reuters) - U.S. job openings increased more than expected in April, hitting the highest level in nearly two years, though hiring declined likely because of lingering economic uncertainty.
Job openings, a measure of labor demand, surged 731,000 to 7.618 million by the last day of April, the highest level since May 2024, the Labor Department's Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey, or JOLTS report on Tuesday. Economists polled by Reuters had forecast 6.88 million unfilled jobs.
The job openings rate jumped to 4.6% from 4.2% in March.
Hiring decreased 419,000 to 5.116 million.
Job growth has posted two back-to-back months of gains in excess of 100,000, suggesting the labor market could even be firming after wobbling in 2025 under the weight of uncertainty, largely from import tariffs.
The hires rate fell to 3.2% from 3.5% in March. Layoffs and discharges dropped 192,000 to 1.692 million. The layoffs rate fell to 1.1% from 1.2% in the prior month.
The three-month U.S.-Israeli war on Iran has not had a noticeable impact on the labor market, with first-time applications for unemployment benefits at historical low levels.
The closely watched employment report for May, due on Friday, is likely to show nonfarm payrolls increased by 85,000 jobs last month after rising 115,000 in April, a Reuters survey of economists predicted. The unemployment rate is forecast holding steady at 4.3%.
A stable labor market would reinforce financial market expectations that the Federal Reserve will keep its benchmark overnight interest rate in the 3.50%-3.75% range into next year, while monitoring the inflation fallout from the Middle East conflict. Inflation increased at its fastest pace in three years in April, the government reported last week.
Reporting by Lucia Mutikai; Editing by Andrea Ricci
Source: Reuters