Job openings dip below 10M in May but remain high

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U.S. job openings dipped in May but remained well above the typical pre-pandemic level, indicating the labor market remains surprisingly tight even in the face of higher interest rates.

The Labor Department said Thursday that there were 9.8 million job openings at the end of May, down from the upwardly revised 10.3 million openings reported in the previous month. Economists surveyed by Refinitiv expected a reading of 9.93 million.

Despite the decline, job openings remain historically high: Before the COVID-19 pandemic began in early 2020, the highest on record was 7.6 million. There are still roughly 1.7 jobs per unemployed American. 

«The report points to a robust and resilient labor market with 40% more job openings, 21% fewer monthly layoffs and discharges, and 15% more employee-initiated quits (most for better jobs) than before the pandemic,» said Julia Pollak, ZipRecruiter chief economist.

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A general view shows construction workers standing before the Manhattan skyline and Empire State Building in New York City on Jan. 24, 2023. (ED JONES/AFP via Getty Images / Getty Images)

The Federal Reserve closely watches these figures as it tries to gauge labor market tightness and wrestle inflation under control. The figure indicates that demand for employees still far outpaces the supply of available workers.

The central bank responded to the inflation crisis and the extremely tight labor market by raising interest rates at the fastest pace in decades. Officials approved 10 straight rate hikes over the course of 15 months and have hinted that another increase is on