(Bloomberg News) Job openings in the U.S. decreased in April for the first time in three months, showing companies started to lose confidence in the expansion's durability even before hiring slumped in May.
The number of positions waiting to be filled fell by 151,000 to 2.97 million, the fewest since January, the Labor Department said today in a statement posted on its website. The number of people hired and the number of workers fired also decreased.
The unemployment rate rose to 9.1 percent in May while employers added the fewest workers in eight months, Labor Department data showed last week. More job gains are needed to drive consumer spending after economic growth slowed in the beginning of the year.
"A lot of employers are putting hiring plans on hold until they can be almost 100 percent certain that the recovery is continuing and is going to be at some point self sustainable," Jennifer Lee, a senior economist at BMO Capital Markets in Toronto, said before the report.
Job openings decreased 4.8 percent in April from a revised 3.12 million in March, the Labor Department report showed.
The loss in vacancies was led by a 91,000 decrease in professional and business services, followed by a 65,000 drop in education and health services. The construction industry had a 28,000 increase in openings in April.
Today's report helps shed light on the dynamics behind the monthly employment figures. Payrolls rose in May by 54,000 after a 232,000 gain the prior month, Labor Department figures showed on June 3.
Net Hiring
Employers took on 3.97 million workers in April, or 95,000 less than the previous month, according to today's report. Total separations, which include retirements and those who left their jobs voluntarily, decreased to 3.74 million from 3.8 million a month before. The number of firings fell to 1.53 million from 1.61 million.
In the 12 months ended in April, the economy created a net 1.2 million jobs, representing about 47.7 million hires, compared with about 46.4 million separations, today's report showed.