May Job Openings Top Expectations: What to Know
Job openings in May were higher than economists expected, while April's number was revised lower. Here's what you need to know.
![Orange "now hiring" sign in storefront window](https://cdn.mos.cms.futurecdn.net/y7XQ5FT8mZWK6YpZiF4cMX-415-80.jpg)
The Job Openings and Labor Turnover Survey (JOLTS) released this morning by the Bureau of Labor Statistics (BLS) topped expectations and kicked off a busy week of jobs data.
The mid-morning report showed the number of job openings ticked slightly higher in May, to 8.1 million from 7.9 million in April. The April number was revised lower by 140,000 from its initial release last month. The data also revealed that the job openings rate ticked higher to 4.9% in May from 4.8% in April.
The JOLTS number for May beat economists' expectations. According to Comerica, job openings were estimated to decline to 7.9 million.
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Job openings were slightly higher than expected in May, though the upbeat message was partially offset by downward revisions to April's openings," said Bill Adams, chief economist at Comerica.
Adams notes that the JOLTS data gives context to Wall Street, allowing it to "understand why the job market is doing what it's doing. That context shows that the gradual slowdown in U.S. job growth over the last few years is due to a much bigger slowdown in labor market churn, meaning fewer people quitting jobs and being hired by other employers."
The economist adds that slowing wage growth – a measure of inflation – can be attributed to the slowdown in the job market, since "getting a new job is a big driver of wage growth."
Job openings data hits ahead of June jobs report
The next big economic report is the Employment Situation Summary – also known as the jobs report or nonfarm payrolls report – which will be released by the Bureau of Labor Statistics at 8:30 am Eastern this Friday.
"The jobs report gives us a comprehensive look at the labor market, which is ultimately what fuels consumer spending," writes Dan Burrows, senior investing writer at Kiplinger, in his feature "When Is the Next Jobs Report?". "Recall that consumer spending accounts for about two-thirds of all U.S. economic activity, and you can see why the jobs report has always been front and center."
More recently, jobs data and wage pressures have made the Federal Reserve anxious about cutting interest rates. "Cut too soon, with a healthy economy and labor market as the backdrop, and inflation could accelerate again, the thinking goes.," Burrows adds.
According to CME Group's FedWatch Tool, futures traders are currently pricing in a 63% chance the Fed will issue its first quarter-point rate cut in September, up from 47% one month ago.
Related Content
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Who Do High Interest Rates Hurt? College Students
High interest rates mean college students will pay more to borrow. Savers will continue to benefit but need to remain vigilant.
By Sandra Block Published
-
8 Great Places for Snowbirds to Land
These affordable warm-weather cities for snowbirds offer plenty of housing options, abundant activities for retirees and access to good health care.
By Sandra Block Published
-
6 Bellwether Stocks to Watch
These bellwether stocks are like weathervanes for their industries or the economy and are worth watching as indicators.
By Kim Clark Published
-
The Best Financial Stocks to Buy
Financial stocks play a critical role in the economy and are a key component of any well-rounded portfolio.
By Kyle Woodley Published
-
Stock Market Today: S&P 500, Nasdaq End at Record Highs Ahead of July 4th
Wednesday's abbreviated session was jam-packed with news, including labor market updates and Southwest Airlines' "poison pill."
By Karee Venema Published
-
Stock Market Today: Stocks Rise as Powell Praises Inflation Progress
Tesla was the best S&P 500 stock Tuesday after the EV maker disclosed its second-quarter deliveries report.
By Karee Venema Published
-
CrowdStrike Stock Downgraded: Should Investors Be Worried?
The downgrade of CrowdStrike is a valuation call, Piper Sandler says. Here's what you need to know.
By Joey Solitro Published
-
Tesla Stock Soars on Q2 Deliveries Beat: What to Know
Tesla stock is higher Tuesday after the EV maker delivered more vehicles than expected in the second quarter. Here's what you need to know.
By Joey Solitro Published
-
Stock Market Today: Stocks Close Higher Ahead of Powell Speech
The main indexes kicked off the second half with a win thanks to solid gains in several mega-cap stocks.
By Karee Venema Published
-
Chewy Becomes the Latest Stock Pick of Roaring Kitty
Chewy stock is volatile Monday after Keith Gill, the investor known as Roaring Kitty, disclosed a 6.6% stake in the online pet retailer. Here's what you need to know.
By Joey Solitro Published