U.S. job openings rose to their highest level in nearly two years in April, a surprising sign of resilience in the labor market even as employers continued to show caution in the actual hiring of new employees.
The number of available jobs jumped by 731,000 to 7.618 million on the last day of April, the highest level since May 2024, according to the Labor Department's Job Openings and Labor Turnover Survey, known as JOLTS.
Economists surveyed by Reuters had expected 6.88 million openings, making the increase much stronger than the forecast consensus.
On one hand, employers appeared to be advertising more positions, suggesting that demand for workers has not collapsed despite months of uncertainty over tariffs, inflation, geopolitical pressure, and the impact of artificial intelligence.
On the other hand, hiring fell sharply, showing that many companies may still be reluctant to bring new workers onto their payrolls. Hiring dropped by 419,000 roles to 5.116 million in April, while the hiring rate fell to 3.2% from 3.5% in March. Layoffs also declined, falling by 192,000 to 1.692 million, with the layoff rate easing to 1.1% from 1.2%.
Workers, meanwhile, may be staying put rather than switching jobs in a less predictable economy. The job openings rate rose to 4.6% in April from 4.2% in March. The increase matters because job openings are closely watched by economists and the Federal Reserve as a measure of labor demand.
A rise in openings can signal confidence among employers, but if hiring does not follow, it can also suggest that companies are testing the market without committing to faster expansion. The data comes ahead of the closely watched May employment report. Economists surveyed by Reuters expect nonfarm payrolls to increase by 85,000 jobs, while the unemployment rate is expected to hold at 4.3%.
For the Federal Reserve, the latest JOLTS report may complicate the case for cutting interest rates. A stable labor market gives policymakers less urgency to lower borrowing costs, especially at a time when inflation remains a concern. Reuters reported that financial markets expect the Fed to keep its benchmark overnight interest rate in the 3.50% to 3.75% range into next year as officials monitor inflation pressures.
The April data also follows a period of weaker labor-market momentum in 2025, when economic uncertainty weighed on business planning. Job growth has posted two straight months of gains above 100,000, suggesting the labor market may be firming after that wobble.
Still, the gap between openings and hires is the clearest warning sign in the report. A true labor-market rebound would likely require job postings to translate into actual employment gains.
That leaves workers and policymakers watching the next round of data closely. If payroll growth strengthens in May, the April jump in openings may look like the start of a healthier hiring cycle. If hiring remains weak, the surge in vacancies could look more like a cautious corporate wish list than a full labor-market comeback.
