By Andrew Moran
Employment vacancies unexpectedly rose in April, reaffirming the health of the U.S. labor market.
According to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Summary (JOLTS), job openings climbed by 191,000 to 7.391 million, from the upwardly revised 7.2 million in March.
The consensus forecast indicated a reading of 7.1 million.
The largest increases were observed in arts, entertainment, and recreation (43,000) and mining and logging (10,000). Conversely, the number of job vacancies decreased in accommodation and food services (negative 135,000) and state and local government (down by 51,000).
Over the past 12 months, job openings have declined by more than 200,000.
Several surveys have indicated that companies are struggling to fill their positions.
The April Small Business Optimism Index found that 34 percent of business owners reported job openings they could not fill, although their outlook has slightly deteriorated.
“While owners are still trying to fill a high number of current job openings, their outlook on business conditions is less supportive of future business investments,” said Bill Dunkelberg, chief economist for the National Federation of Independent Business.
The number of job quits tumbled by 150,000 to a four-month low of 3.194 million. This is down from the upwardly adjusted 3.344 million in March and 3.414 million in April 2024.
JOLTS figures show that employment quits were concentrated in trade, transportation, and utilities (negative 123,000) and professional and business services (negative 29,000).
Economists pay attention to the quits data because they can signal workers’ confidence in finding a new job in the current economy.
The quits rate—a measure of voluntary job leavers as a share of total employment, dipped to 2 percent from 2.1 percent in the previous month.
The April report confirmed the trend of employers maintaining their headcount. The numbers for new hires and layoffs were flat at about 5.6 million and 3.2 million, respectively.
Overall, the latest JOLTS update provides a positive outlook for the U.S. economy, according to Chris Zaccarelli, the CIO for Northlight Asset Management.
The increase occurred as President Donald Trump’s April 2 announcement of global tariffs changed international trade flows and ignited panic on Wall Street.
“The higher-than-expected job openings number this morning is a good sign for the economy, as many were worried that the tariff uncertainty was weighing too heavily on businesses,” Zaccarelli said in a note emailed to The Epoch Times.
“To the extent that they felt confident to hire and expand, it shows that businesses are looking past the tariff issues for now and that should give a lift to the market.”
While the April JOLTS is a lagging indicator, the May jobs report will provide a more up-to-date look at the U.S. employment situation.
Early estimates suggest that the economy created 130,000 new jobs and the unemployment rate held steady at 4.2 percent.
“Despite ongoing uncertainties from tariffs and broader economic volatility, new unemployment claims have remained relatively restrained, while the total number of individuals receiving assistance has risen to the highest in more than three years,” Mark Hamrick, a senior economic analyst at Bankrate, told The Epoch Times.
“Such resilience has been its hallmark over the past several years, but the future is not guaranteed.”
In the week that ended on May 30, the number of Americans filing for unemployment benefits rose by 14,000 to a higher-than-expected 240,000, according to the Department of Labor. Continuing jobless claims—a gauge of people who have filed for unemployment benefits and still receive them—also rose by 26,000 to 1.919 million, the highest since November 2021.
Main Street Versus Corporate America
In recent months, a notable divergence has emerged between small businesses on Main Street and executives on Wall Street.
In the second quarter, The Conference Board’s Measure of CEO Confidence declined to its lowest level since the end of 2022. The survey also highlighted the largest quarterly decline in the survey’s history.
“All components of the Measure weakened into pessimism territory,” Stephanie Guichard, a senior economist for global indicators at The Conference Board, said in a statement. “CEOs’ views about current economic conditions led the plunge, registering the largest quarter-on-quarter decline in almost 50 years.”
Geopolitical instability, trade and tariffs, regulatory uncertainty, and cyber risks were identified as their top business risks.
However, small businesses are more supportive of the president’s tariff plans and remain optimistic about the economy, according to a recent survey.
A RedBalloon–PublicSquare flash poll of 50,000 business owners found that 70 percent think the administration’s levies will strengthen the U.S. economy over time. Seventy-seven percent expect business growth this year.
“Small business owners are sending a clear message: They’re all-in on tariffs to bring manufacturing home,” Michael Seifert, CEO of PublicSquare, told The Epoch Times. “This isn’t blind optimism—it’s a calculated bet on America’s economic future.”
Still, uncertainty remains the key term in today’s economic environment.
The Institute for Supply Management’s May Manufacturing Purchasing Managers’ Index—a monthly survey signaling the sector’s prevailing economic direction—revealed a plethora of comments from concerned executives.
“Uncertainty due to the recent tariffs continue to weigh on profitability and service,” a leader in paper products said in the survey. “An unresolved [trade deal with] China will result in empty shelves at retail for many do-it-yourself and professional goods.”
The ISM Manufacturing Purchasing Managers’ Index contracted for the third consecutive month in May, sinking below market estimates. The report shows that employment improved, prices were little changed, and new orders ticked higher.
