TEMPO.CO, Jakarta – Job openings in the United States (US) rose sharply in April, reaching their highest level in nearly two years, even as hiring slowed and workers showed declining confidence in the labor market amid uncertainty caused by the ongoing Iran conflict.
Data released by the US Bureau of Labor Statistics on Tuesday showed that job openings increased by 731,000 to 7.62 million at the end of April, up from 6.89 million in March. The figure marked the largest monthly increase in five years and exceeded economists' expectations of 6.88 million openings.
The increase pushed job vacancies to their highest level since May 2024 and suggested stronger labor demand despite broader economic concerns. The job openings rate also rose to 4.6 percent from 4.2 percent in March.
However, the rise in vacancies did not translate into stronger hiring activity. New hires fell by 419,000 to 5.12 million in April, while layoffs also declined, highlighting what economists describe as a "slow-hire, slow-fire" labor market.
According to Reuters, nearly 91 percent of the increase in job openings came from the professional and business services sector, where vacancies jumped by 668,000 positions. Healthcare and social assistance added another 89,000 openings, while construction, manufacturing, transportation, warehousing, utilities, and local government sectors also recorded gains.
Some economists cautioned that the sharp increase in professional and business services openings could prove temporary. Samuel Tombs, chief US economist at Pantheon Macroeconomics, noted that previous declines in the sector had later been revised away, raising questions about whether April's surge accurately reflects labor demand.
The latest data comes as the US economy faces growing uncertainty linked to the ongoing conflict involving Iran, which has disrupted supply chains and contributed to higher energy prices.
Matthew Martin, senior US economist at Oxford Economics, said the labor market remains broadly stable but faces downside risks if the conflict continues. He warned that higher oil prices could reduce consumer spending power and make businesses more cautious about expanding their workforce.
As reported by CNN, the April increase in job openings could provide some encouragement for job seekers, particularly college graduates and white-collar workers who have faced concerns about layoffs and the growing adoption of artificial intelligence.
For the first time since June last year, the number of job openings exceeded the number of unemployed workers, a development that some economists view as a positive sign for the labor market.
Heather Long, chief economist at Navy Federal Credit Union, described the milestone as an important source of optimism for job seekers.
The professional and business services sector accounted for more than 90 percent of the increase in vacancies, suggesting continued demand for skilled workers despite fears that AI could reduce employment opportunities.
Noah Yosif, chief economist at the American Staffing Association, said employers remain cautious about making hiring decisions because labor costs are rising and economic conditions remain uncertain.
"Miscalculating on the wrong worker can be costly for employers," Yosif told CNN. "Employers are really taking their time to make sure they are filling jobs with the right candidates."
Meanwhile, worker confidence continued to weaken. The number of voluntary resignations fell by 183,000 to 2.98 million in April, the lowest level since August 2020. The quits rate, often viewed as a measure of worker confidence, slipped to 1.9 percent from 2.0 percent in March.
The decline suggests fewer workers are willing to leave their jobs voluntarily, reflecting concerns about finding new employment opportunities.
At the same time, layoffs and discharges fell by 192,000 to 1.69 million, helping to stabilize overall employment levels. The layoff rate edged down to 1.1 percent from 1.2 percent in March.
Economists expect the US labor market to continue expanding at a modest pace. A Reuters survey forecasts that nonfarm payrolls increased by 85,000 jobs in May, following two consecutive months of gains exceeding 100,000. The unemployment rate is expected to remain unchanged at 4.3 percent.
Despite the strong job openings data, analysts remain cautious about the outlook. Rising energy costs and uncertainty surrounding the Iran conflict could weigh on business investment and hiring plans in the coming months.
Yosif said the impact of the conflict has so far been partially offset by US efforts to stabilize energy supplies, but warned that prolonged disruptions in the Strait of Hormuz could reverse recent labor market gains.
"Eventually oil supplies are going to run out. Eventually, investors are going to be expecting something more concrete with respect to when the Strait of Hormuz is going to be open," he said. "That is where we could actually see some reversal in the gains that we've seen at the beginning of this year."
Overall, the latest data suggests the US labor market remains resilient, with employers continuing to seek workers while remaining cautious about expanding payrolls amid growing geopolitical and economic uncertainty.
Read: Iran Launches Strikes on US Targets as Gulf Tensions Escalate
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