U.S. job openings jump to 7.6 million as labor market defies expectations despite hiring slowdown
The U.S. labor market continued to show resilience in May as job openings remained at a surprisingly strong 7.6 million, well above economists’ expectations despite ongoing economic uncertainty. While employers continue to advertise millions of positions, hiring remains subdued, highlighting a labor market that is stable but still lacking the momentum seen during the post-pandemic boom.
The latest Job Openings and Labor Turnover Survey (JOLTS) from the Bureau of Labor Statistics showed employers posted 7.6 million job openings in May. Economists had forecast roughly 7 million openings, making the latest reading an upside surprise.
The total also marks the highest level in about two years and suggests that demand for workers has remained stronger than many analysts anticipated, even as businesses navigate elevated inflation, geopolitical tensions and higher borrowing costs.
Open positions remain far below the 2022 peak
Although job openings have strengthened in recent months, they remain well below the record highs reached during the post-pandemic hiring surge.
Openings peaked at 12.3 million in 2022 before steadily declining to a post-pandemic low of 6.55 million late last year. Since then, the labor market has gradually stabilized, with May’s reading indicating that employers have become somewhat more confident about future labor needs.
Despite millions of available jobs, employers continue to hire cautiously.
Gross hiring slipped to 5.17 million in May from 5.26 million in April. During the exceptionally strong labor market between mid-2021 and mid-2023, monthly hiring regularly exceeded 6 million workers.
The gap between open positions and actual hiring suggests many businesses are keeping vacancies posted while delaying decisions about filling them.
Job gains continue despite economic headwinds
The labor market has remained resilient despite significant economic challenges this year.
Following the U.S. and Israel’s military action against Iran on Feb. 28, Iran closed the Strait of Hormuz, disrupting a major global energy shipping route. Oil and natural gas prices surged, increasing costs for consumers already dealing with elevated inflation.
Even so, U.S. employers have continued adding jobs. During the first five months of the year, employers added an average of nearly 114,000 jobs per month, a sharp improvement from the average monthly gain of just 9,700 jobs throughout 2025, which marked the weakest hiring performance outside a recession since 2002.
Demographic changes are also reshaping the labor market.
Economists say baby boomer retirements and reduced immigration have shrunk the available labor force, meaning the economy no longer needs to generate as many new jobs each month to maintain a stable unemployment rate.
Some economists estimate the economy’s “break-even” hiring pace may now be close to zero monthly job gains, compared with roughly 150,000 jobs per month just a few years ago.
That dynamic has helped keep unemployment historically low even as hiring activity has cooled.
Hiring demand varies across industries
The increase in job openings during May was spread across several sectors of the economy.
Construction companies, manufacturers, hotels, restaurants and recreation businesses all posted more openings during the month. Healthcare was the primary sector reporting fewer available positions.
Meanwhile, layoffs changed little and remain close to historic lows, another sign that employers are generally reluctant to reduce staffing levels despite economic uncertainty.
Consumers remain uneasy about the labor market
Although hiring data remains relatively solid, Americans are less optimistic about finding work.
The Conference Board’s Consumer Confidence Index edged up 0.6 point to 91.2 in June as gasoline prices declined from recent highs. However, confidence remains well below pre-pandemic levels, when readings above 120 were common.
“Consumer confidence inched up in June as falling oil prices in recent weeks provided some relief to consumer inflation fears,” Dana Peterson, the Conference Board’s chief economists said in a statement. “Consumer appraisals of current business conditions were slightly more positive compared to last month. However, perceptions of the current labor market softened measurably.”
The survey found that 22.5% of respondents said jobs are “hard to get,” up from 19.8% the previous month and the highest share since the later stages of the pandemic in early 2021.
Despite lingering pessimism, Americans have continued spending.
Government data released earlier this month showed consumer spending increased in May even as gasoline prices remained elevated. Analysts expect steady consumer demand to help the economy grow at roughly a 2.5% annualized pace during the April-through-June quarter.
Falling fuel prices may further improve household finances. After climbing above $4.50 per gallon following the outbreak of the U.S.-Iran conflict, the national average gasoline price has retreated to approximately $3.85 per gallon, according to AAA.
The Federal Reserve is watching labor market trends closely
Federal Reserve policymakers continue monitoring labor market conditions as they evaluate future interest-rate decisions.
Officials are looking for signs that a stable labor market could lower unemployment further and push wages higher. Stronger wage growth could complicate the Fed’s efforts to bring inflation back toward its target and potentially influence the timing of future monetary policy decisions.
At the same time, businesses continue balancing the need to control costs with the desire to remain ready for stronger economic growth if inflation eases and geopolitical risks diminish.
The next major test for the labor market arrives with the Labor Department’s June employment report.
Economists expect employers to have added roughly 100,000 jobs during the month while the unemployment rate is forecast to remain at 4.3%.
If those expectations are met, the report would reinforce the view that the U.S. labor market remains resilient. While hiring is no longer booming, steady job growth, historically low unemployment and millions of available positions continue to support the broader economy despite ongoing uncertainty.
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14 essential strategies to maximize your Social Security and avoid costly mistakes
Social Security is a vital lifeline for many seniors, providing crucial income support during retirement. With inflation at its highest in four decades, Social Security’s inflation-adjusted benefits offer protection against rising costs.
Rising interest rates have disrupted many retirement portfolios, causing bond fund values to plummet. In this volatile financial landscape, Social Security can stabilize a typical stock-bond retirement portfolio. By implementing smart strategies, retirees can maximize their Social Security benefits and ensure a more secure financial future.
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Deciding when to claim Social Security is often about maximizing your benefit. Financial planners usually advise delaying your claim for as long as possible to secure the highest monthly payment. Your benefit is based on your lifetime earnings, with a full payout available at your full retirement age (FRA), which is currently between 66 and 67 depending on your birth year. Claiming before FRA results in a permanent reduction in your monthly benefit, while waiting beyond FRA leads to a permanent increase. However, the decision isn’t solely about maximizing the monthly check. Personal factors such as health, family circumstances, and financial needs can play a significant role in determining the right time to claim.
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John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
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