US job openings fell in April to their lowest level in more than three years, consistent with a gradual slowdown in the labor market.
The number of jobs available fell to 8.06 million from a downwardly revised reading of 8.36 million the previous month, the Bureau of Labor Statistics' Job Opportunities and Labor Turnover Survey, known as JOLTS, showed Tuesday. This number was lower than all estimates in a Bloomberg survey of economists.
The decline helped bring the ratio closely monitored by the Federal Reserve — the number of job openings per unemployed worker — to the lowest level in nearly three years.
The decline was fairly broad. Job openings in health care fell to their lowest level in three years, while job openings in manufacturing fell to their lowest levels since the end of 2020. Demand for government jobs also weakened.
Job openings in accommodation and food services also declined, which may reflect California's higher minimum wage requirements. Employment in the industry has fallen to its lowest levels since the beginning of the pandemic.
Recent data suggests that the labor market is slowing, but it has been gradual through a slowdown in hiring rather than direct job cuts. Fed officials hope this trend will continue in order to curb demand and tame inflation without putting millions of people out of jobs.
The rate of hiring and layoffs remained unchanged. While layoffs remain historically low, hiring has slowed, suggesting that companies are comfortable that their staffing levels are adequate to meet demand.
The so-called quit rate, which measures people who voluntarily leave their jobs, has remained at its lowest level since 2020. The recent decline may indicate that people are holding on to their current jobs because they feel less confident in their ability to find a new one.
The unemployment opportunity ratio for the unemployed fell to 1.2, the lowest level since June 2021. That number — which Fed officials pay close attention to — has fallen significantly over the past year. At its peak in 2022, the ratio was 2 to 1.
The data precedes Friday's monthly employment report, which is expected to show the U.S. added 185,000 jobs in May while the unemployment rate remained flat.
Some economists have questioned it credibility From JOLTS statistics, this is partly due to the low response rate to the survey.