Job openings show sharp decline, but still vastly outnumber available workers

A man walking a dog passes by a help wanted sign advertised along East Main Street in East Islip, New York on February 17, 2022.

The Bureau of Labor Statistics reported Wednesday that job openings fell in April.

In April, the openings total declined by 455,000 from the upwardly revised March number, which was about in line with the FactSet estimate.

The gap between openings and available workers is still high by historical standards and reflective of a very tight labor market, but it is less than it was in March. The job openings rate fell as a share of the labor force.

The Federal Reserve watches the jobs numbers closely for signs of labor slack. The shortage of workers has led to higher wages and higher inflation since the early 1980s.

The jobs market is still tight, with near-record job openings and layoffs hitting a record low, according to Robert Frick, corporate economist at Navy Federal Credit Union.

The manufacturing reading combined with the JOLTS report showed a potential shift in the employment picture.

Firms on balance expect to cut back on hiring. The employment component showed a reading of 48.6, the first sub-50 reading since November 2020.

Business expansion is measured against contraction by the survey. The headline ISM number was higher in May than in April.

Worker mobility is still strong despite the potential slowdown in manufacturing hires.

In April, the number of workers who left their jobs was little changed from the previous month, but it was reflective of the ongoing Great Resignation that has seen unprecedented market movement.

There was little change in hiring on the month. The industry saw a decline in hiring of 77,000. The hire rate was 9% a year ago.

The nonfarm payrolls report for May is two days away. The unemployment rate is expected to fall to 3.5%, following a gain of 428,000 jobs in April.