Amid growing concerns about economic volatility and policy uncertainty, the U.S. labor market showed mixed signals in April, with a notable rise in job openings coupled with a significant uptick in layoffs. The movement reflects underlying signs of a cooling labor market influenced in part by ongoing tariff-related disruptions and a broader slowdown in economic momentum.
According to the Job Openings and Labor Turnover Survey (JOLTS) released Tuesday by the U.S. Department of Labor’s Bureau of Labor Statistics, job openings a key gauge of labor demand—”rose 191,000 to 7.391 million by the last day of April.” The data also showed that March’s numbers were revised higher to 7.200 million open positions instead of the previously reported 7.192 million.
Economists surveyed by Reuters had projected approximately 7.10 million vacancies. Analysts suggest that April’s rise in vacancies was likely a correction following March’s sharp decline. Alongside this, hiring also posted an increase, rising “by 169,000 to 5.573 million in April.”
However, the report also highlighted a troubling rise in job losses, as “layoffs rose 196,000 to 1.786 million.” This dual trend—rising openings and layoffs—adds to the complexity of interpreting labor market dynamics, especially given the unpredictable nature of U.S. trade policies.
“Economists say the on-and-off manner in which the import duties are being implemented is making it difficult for businesses to plan ahead.” The uncertainty deepened after a recent legal development: “A U.S. trade court last week blocked most of President Donald Trump’s tariffs from going into effect, ruling that the president overstepped his authority.” However, the situation was quickly reversed when “the tariffs were temporarily reinstated by a federal appeals court on Thursday, adding to the uncertainty facing businesses.”
Public sentiment appears to be aligning with these economic jitters. “Consumers are increasingly becoming less confident about the jobs market and the Conference Board’s labor market differential has narrowed considerably this year.” This trend could potentially be reflected in the upcoming May employment data.
Looking ahead, economists surveyed by Reuters expect nonfarm payrolls to increase by 130,000 in May, following a gain of 177,000 in April. The unemployment rate is forecast to remain steady at 4.2%, although there are greater risks of a rise to 4.3%.
