The May JOLTS data confirms the softer employment trend that began in the second half of 2024 but is in keeping with the Federal Reserve's characterization of a labor market that is broadly in balance. This data will help allay fears of an imminent recession and will not spur the Federal Reserve to cut interest rates.

The number of job openings rose to 7.769 million (4.6 percent) in May, from an upwardly revised 7.395 million (4.4 percent) in April and compared to the expectation of 7.3 million in the Econoday survey of forecasters. Job openings are down by 132,000 compared to a year ago.

May hires were 5.503 million (3.4 percent), after 5.615 million (3.5 percent) in April, and were down by 112,000 compared to May 2024.

The number of total separations was 5.242 million (3.3 percent) in May, vs 5.313 million (3.3 percent) in April. Within separations, May quits were at 3.293 million (2.1 percent) after 3.215 million (2.0 percent) in April, while layoffs and discharges came in at 1.601 million (1.0 percent) following 1.789 million (1.1 percent) in April.

Job openings seen at 7.300 million rate in May versus 7.391 million in April and 7.200 million in March.

The Labor Department's JOLTS report tracks monthly change in job openings and offers rates on hiring and quits. The reporting period lags other employment data including the employment situation report. The word JOLTS stands for Job Openings and Labor Turnover Survey.

Although lagging the release timing of the employment situation report by a month, JOLTS provides additional information on the labor market. The payroll survey in the employment situation report provides numbers on net job changes. JOLTS breaks down labor market data into pre-net changes such as job openings, hires, and separations.