The US job market remains resilient despite high borrowing costs and uncertainty over economic policy. In May, job openings reached 7.8 million, the highest since November 2021. This surge in vacancies was unexpected, defying economists’ expectations of a slight decrease to 7.3 million.
Despite the increase in job openings, hiring fell in May, suggesting that employers are hesitant to add workers amid economic uncertainty. The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) report also showed that layoffs fell, but quitting rates rose modestly.
The strong post-pandemic recovery has led to a labor market that is steadily decelerating. Higher borrowing costs have gradually cooled the labor market, while President Trump’s policy of taxing imports at high rates has added uncertainty to the hiring outlook. The US economy generated 117,000 jobs in May, according to forecasters, down from 139,000 in the previous month.
The unemployment rate is forecast to tick up to 4.3% from 4.2% in May. While the labor market remains strong, the economic uncertainty has led to a more cautious hiring environment.
Source: https://apnews.com/article/jobs-unemployment-openings-layoffs-trump-37ad7001abcea74b9cc43e43331220f6