WASHINGTON — Signs of a slowing U.S. labor market have emerged despite continued job growth, as recent economic data showed employers hiring at a more cautious pace and workers facing longer periods of unemployment, according to government reports and economists.
Data released by the Labor Department in recent weeks showed hiring activity weakening even as overall employment remained positive. The Job Openings and Labor Turnover Survey (JOLTS) reported that employers filled fewer positions in April, while separate labor-market indicators suggested businesses remained hesitant to expand payrolls amid economic uncertainty.
Job openings rose to their highest level in nearly two years in April, but hiring fell by more than 400,000 positions from the previous month, according to Labor Department data. Economists said the combination pointed to a labor market that remained active but was not translating available openings into new hires at the same pace.
“The labor market had not shifted from its ‘slow-hire, slow-fire’ mode,” economists cited by Reuters said after the release of the April data. Employers have generally avoided large-scale layoffs but have also remained cautious about adding staff.
Additional evidence of moderation came from unemployment-benefit filings. Initial jobless claims increased to 229,000 in the week ending June 6, exceeding economists’ expectations, while continuing claims rose to nearly 1.8 million, suggesting some unemployed workers were taking longer to find new jobs. The median duration of unemployment also increased, according to Labor Department figures reported by Reuters.
Private-sector payroll processor ADP reported that employers added 122,000 jobs in May, a figure indicating continued hiring but at a measured pace. ADP Chief Economist Nela Richardson said hiring had become “more broad-based” across industries, though overall growth remained moderate compared with earlier years.
Economists said businesses continue to face uncertainty linked to trade policy, geopolitical tensions and inflation pressures. Reuters reported that employers have been reluctant to commit to significant hiring increases while assessing the impact of higher costs and broader economic conditions.
At the same time, official employment data released on June 5 showed the economy added 172,000 jobs in May and the unemployment rate remained at 4.3%, indicating that the labor market continues to expand overall. Earlier monthly figures were also revised upward, according to the Labor Department.
Federal Reserve officials have closely monitored labor-market conditions as they weigh interest-rate policy. While some indicators point to slower hiring momentum, recent employment gains have led several economists to conclude that the labor market remains relatively resilient.
As of mid-June, economists and policymakers continued to assess whether the softer hiring indicators represent a temporary slowdown or the beginning of a broader cooling trend. Further labor-market reports due later this summer are expected to provide additional clarity on employment conditions across the United States.
