WASHINGTON, D.C. America’s job market is starting to lose momentum.
In April, job openings rose — but so did layoffs, marking their most significant jump in nine months. Fewer people voluntarily quit, and companies appeared cautious about hiring as economic concerns and tariff uncertainty weighed heavily.
The data comes from the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS), released this week, and aligns with broader signals of consumer unease and slowing business confidence.
“We will call this report another indication of stasis in U.S. companies in the face of tariff uncertainty,” said Carl Weinberg, chief economist at High Frequency Economics. “Once companies are more certain that bad times are coming, they will start to shed workers.”
Job openings, a key measure of labor demand, increased by 191,000 to 7.391 million in April. March figures were also revised slightly higher to 7.200 million. April’s bump is believed to be a correction after a sharp drop in March.
Vacancies rose in sectors like professional and business services, healthcare, and social assistance. However, restaurants and bars saw 135,000 fewer job postings, with additional declines in manufacturing, finance, insurance, and public education.
Interestingly, federal government job openings rose by 13,000 — despite a hiring freeze imposed by the Trump administration to cut costs. The overall job openings rate edged up to 4.4 percent from 4.3 percent.
Layoffs climbed by 196,000 to 1.786 million—the highest since last July—though still relatively low overall. Companies remain cautious about letting workers go, having faced labor shortages during and after the COVID-19 pandemic. The layoff rate rose slightly from 1.0 percent to 1.1 percent.
The industries hardest hit by layoffs were professional services, healthcare, restaurants and bars, construction, and manufacturing. The government sector, however, saw fewer job cuts.
Despite the uncertainty, hiring increased by 169,000 to 5.573 million, led by gains in construction, business services, and hospitality. Retail, finance, and insurance sectors, on the other hand, saw a drop in hiring.
Tariff-related disruptions continue to cloud the outlook. A U.S. trade court recently blocked most of President Trump’s tariffs from taking effect, citing executive overreach. But just a day later, a federal appeals court temporarily reinstated those tariffs, adding to business uncertainty.
The number of Americans quitting their jobs dropped by 150,000 to 3.194 million — the sharpest decline since November. The quits rate, which reflects worker confidence in the job market, fell to 2.0 percent from 2.1 percent, hinting at cooling wage pressures.
The Conference Board’s labor market differential — a gauge of job optimism — has narrowed this year, and upcoming jobs data could reinforce that trend. May’s employment report, due June 6, is expected to show a 130,000 increase in nonfarm payrolls, down from 177,000 in April. The unemployment rate is projected to hold at 4.2 percent, with a possible uptick to 4.3 percent.