US Job Openings Surge 731,000 in April, Cooling Fed Rate Cut Expectations

US job openings unexpectedly jumped by 731,000 to 7.618 million in April, the highest level since May 2024, the Labor Department reported Tuesday in its JOLTS survey. The data reduces market expectations for near-term Federal Reserve interest rate cuts. Economists had forecast approximately 6.88 million openings. The job openings rate rose to 4.6% from 4.2% in March. Professional and business services led the surge, adding 668,000 vacancies — the sector's largest monthly increase on record and a three-year high. Small businesses with fewer than 10 employees accounted for most of the gains. Despite the headline strength, actual hiring fell by 419,000 to 5.116 million, while layoffs declined by 192,000 to 1.692 million. The quits rate, a gauge of worker confidence, held at 1.9%, matching the lowest level since 2020. Bloomberg economist Stuart Paul noted the data reinforces hawkish Fed views that controlling inflation takes priority over labor market concerns. Markets now focus on the May nonfarm payrolls report due June 5, with economists projecting 85,000 new jobs, down from 115,000 in April.