Job openings held up in April, rising above market expectations with a boost from the service sector. The total number of openings rose to 7.39 million from 7.2 million in March, according to the Bureau of Labor Statistics on Tuesday.
While there were signs of falling labor demand in tariff-sensitive industries like manufacturing and construction, those industries where jobs are least susceptible to tariffs like health care, education and professional services continued to show strength.
Still, the overall increase in job openings does not represent the full picture of the current labor market.
Beneath the top line, layoffs rose to the highest level since September, while job quits—a proxy for labor market tightness—fell sharply.
While the full negative impact of tariffs has yet to show up in overall labor demand, more weakness is likely to emerge. The job openings data, which tends to fluctuate, may begin to reflect a different picture as the full effects of tariffs filter through the economy.
For now, the data gives the Federal Reserve some breathing room to keep interest rates unchanged for the foreseeable future.
For Friday’s jobs report, we expect another solid month of job gains in May, with a forecast of 125,000 jobs added and a slight increase in the unemployment rate to 4.3%.
Read more of RSM’s insights on the economy and the middle market.
