US Markets
May Job Openings Little Changed as Hiring Falls, Separations Rise
US job openings were little changed in May as hiring fell and separations rose, according to official data that Oxford Economics said likely overstates labor market strength.Vacancies rose by 9,000 to 7.59 million in May, the Bureau of Labor Statistics reported Tuesday. The consensus was for 7.3 million in a survey compiled by Bloomberg.Private job openings were mostly flat at 6.79 million last month. Private education and health services employment fell by 119,000, while leisure and hospitality added 95,000 vacancies."The level of job openings reported in May likely overstates the strength of the labor market, with the increase over the prior two months concentrated in professional business services, which hasn't notched an improved hire rate," Oxford Economics Senior US Economist Matthew Martin said in a note.Hiring decreased to 5.17 million in May from 5.22 million the month before, while the hiring rate remained unchanged at 3.3%, official data showed. Separations jumped to 5.10 million from 5.04 million, driven by higher layoffs and quits.The labor market, however, continues to show signs of stabilization, Martin said."The layoff rate ticked slightly higher but hasn't shown signs of a marked increase," he wrote. "On the other hand, the quits rate remains depressed -- a sign that the increase in payroll growth reported in recent employment reports has not translated into increased confidence by workers to test the labor market in search of new jobs with potentially higher pay."Downside risks to the labor market have reduced amid an extended ceasefire between the US and Iran, Martin said.Global crude benchmarks were on track for a roughly 20% drop in June on the heels of a memorandum of understanding between the US and Iran aimed at halting hostilities."For Federal Reserve officials, this means their attention will stay focused on the inflation mandate and ensuring price stability," Martin wrote, expecting the central bank to next cut interest rates in the second half of 2027.Earlier this month, the Fed kept interest rates unchanged for the fourth consecutive meeting, while removing the so-called easing bias from its statement.
