US hiring drops as resignations fall to lowest in nearly 6 years
US hiring fell by 419,000 in April to 5.116 million amid economic uncertainty linked to the Iran war, while job openings surged to 7.618 million—though economists warn the spike may be misleading. Resignations dropped to a six-year low, signaling declining worker confidence and potential wage stability despite rising commodity prices." "article": "The US Labor Department’s Job Openings and Labor Turnover Survey for April revealed a mixed labor market: hiring declined by 419,000 to 5.116 million, while job openings jumped by 731,000 to 7.618 million—the highest since May 2024. Economists caution the surge in openings, particularly in professional and business services (up 668,000), may be an anomaly, as past revisions have adjusted similar spikes downward. Resignations fell to 2.977 million, the lowest since August 2020, with the quits rate dropping to 1.9%, suggesting workers are less confident in job-hopping. The decline aligns with broader economic concerns, including rising oil prices due to the US-backed war with Iran, which has strained household budgets and dampened hiring intentions. Sector-specific trends show professional and business services leading job openings growth, while retail trade, accommodation and food services, and finance saw declines in both hiring and vacancies. Healthcare and social assistance added 89,000 openings, but manufacturing, transportation, and utilities also saw increases. Matthew Martin of Oxford Economics noted the labor market remains stable but warned higher oil prices could reduce consumer spending and prompt businesses to cut back further. Samuel Tombs of Pantheon Macroeconomics echoed skepticism about the openings surge, calling it potentially ‘illusory’ based on past data revisions. The Federal Reserve may view the low quits rate as a sign wage inflation is easing, despite broader price pressures from the Middle East conflict. Financial markets anticipate the central bank’s next move will hinge on balancing labor market stability against inflation risks.
The US Labor Department’s Job Openings and Labor Turnover Survey for April revealed a mixed labor market: hiring declined by 419,000 to 5.116 million, while job openings jumped by 731,000 to 7.618 million—the highest since May 2024. Economists caution the surge in openings, particularly in professional and business services (up 668,000), may be an anomaly, as past revisions have adjusted similar spikes downward. Resignations fell to 2.977 million, the lowest since August 2020, with the quits rate dropping to 1.9%, suggesting workers are less confident in job-hopping. The decline aligns with broader economic concerns, including rising oil prices due to the US-backed war with Iran, which has strained household budgets and dampened hiring intentions. Sector-specific trends show professional and business services leading job openings growth, while retail trade, accommodation and food services, and finance saw declines in both hiring and vacancies. Healthcare and social assistance added 89,000 openings, but manufacturing, transportation, and utilities also saw increases. Matthew Martin of Oxford Economics noted the labor market remains stable but warned higher oil prices could reduce consumer spending and prompt businesses to cut back further. Samuel Tombs of Pantheon Macroeconomics echoed skepticism about the openings surge, calling it potentially ‘illusory’ based on past data revisions. The Federal Reserve may view the low quits rate as a sign wage inflation is easing, despite broader price pressures from the Middle East conflict. Financial markets anticipate the central bank’s next move will hinge on balancing labor market stability against inflation risks.
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