Job openings in U.S. unexpectedly rose in May to 5.36M

WASHINGTON – Job openings unexpectedly increased in May to the highest level on record, a sign the U.S. labor market will keep bolstering the world’s largest economy.

The number of positions waiting to be filled rose by 29,000 to 5.36 million from a revised 5.33 million in April, a report from the Labor Department showed Tuesday. It marked the second month that openings exceeded hiring, which was little changed in May.

More job listings and waning dismissals underscore the need to increase headcount as companies cater to rising demand, laying the ground for wages to pick up down the line. The report, which includes some metrics tracked by Federal Reserve Chair Janet Yellen, is in sync with her view that the employment outlook is improving though some weakness remains.

“The labor market continues to improve,” Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York, said before the report. “The underlying trend in consumer spending is good. We’re at a point where companies need to keep hiring.”

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The median forecast in a Bloomberg survey of economists projected 5.3 million openings in May after a previously reported 5.38 million a month earlier. The Labor Department began keeping records in December 2000.

The Job Openings and Labor Turnover Survey, or JOLTS, adds context to monthly payrolls data by measuring dynamics such as resignations, help-wanted ads and the pace of hiring. Although it lags the Labor Department’s other jobs figures by a month, Yellen follows the report as a measure of labor-market tightness and worker confidence.

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