The number of job vacancies in the US unexpectedly increased in May, but the labor market showed fatigue

The Zhitong Finance App learned that data released by the US Department of Labor on Tuesday showed that the number of job vacancies in the US unexpectedly rose in May, indicating that demand for labor in some fields was still strong; however, the decline in recruitment numbers during the same period strengthened market concerns that employment growth was cooling down. Analysts pointed out that the uncertainty of the Trump administration's imposition of tariffs on imported goods has made companies more cautious in their decisions, especially as the 90-day “suspension period” of tariffs between the US and China is about to expire.

According to the JOLTS report issued by the Bureau of Labor Statistics under the Department of Labor, by the end of May, the total number of job vacancies in the US had increased by 374,000 month-on-month to 7.769 million, higher than the 7.3 million expected by economists in foreign media surveys. In May, the number of recruits decreased by 112,000 to 5.503 million, while the number of layoffs dropped by 180,000 to 1.601 million.

Despite the rise in the number of job vacancies, weak recruitment activity was interpreted by the market as companies being cautious about future economic prospects. In particular, the Trump administration's 90-day moratorium on imposing retaliatory tariffs on trading partners will soon end on July 9. It is still unclear whether the grace period will continue at that time, causing trouble for companies' long-term employment decisions.

US Treasury Secretary Bessent said on Monday that if negotiations do not progress, some trading partners may face higher tariffs as early as next Wednesday. He also added that whether to extend the tariff grace period will be finally decided by Trump. Meanwhile, Trump himself hinted that Japan may soon receive a tax increase notice, and said he believes there is no need to extend the July 9 tariff limit under certain circumstances.

At the same time, other indicators in the job market are also showing signs of weakness. According to data released last week, the number of people continuing to receive unemployment benefits as of mid-June soared to the highest level in three and a half years. The US Conference Board's consumer survey results also showed that in June, the percentage of consumers who thought “job opportunities were sufficient” fell to its lowest level in more than four years.

According to the latest foreign media survey of economists, the June non-farm payrolls report scheduled to be released by the US Department of Labor this Thursday (due to the early release of the Independence Day holiday) is expected to show that the unemployment rate in June will rise to 4.3% from 4.2% in May; the number of non-farm payrolls is expected to increase by 110,000, down from the 139,000 increase in May.