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Hires Jump as Openings Hold Near 6.9 Million, Pointing to a Steadier Labor Market

The data leave the Fed with little reason to move rates.

Overview

  • The Labor Department's JOLTS report, released Tuesday, showed job openings at 6.866 million in March as hires jumped by 655,000 to 5.554 million and layoffs rose to 1.867 million.
  • ADP said Wednesday that private employers added 109,000 jobs in April, led by education and health services and by small and large firms, while midsize firms lagged.
  • Wage growth in the ADP sample eased to 4.4% for job stayers and held at 6.6% for job changers, a sign of slower pay gains even as hiring continues.
  • With labor demand steady and inflation elevated, markets expect the Federal Reserve to keep its policy rate unchanged after holding at 3.50% to 3.75% last week.
  • Openings have cooled from a 12.3 million peak in March 2022, reflecting a low-hire, low-fire shift shaped by an aging workforce, lower immigration and early AI adoption, even as the Iran conflict raises energy and commodity costs that could weigh on future hiring.