U.S. Job Openings Hit 7.5 Million in September

U.S. job postings surged in September, marking the highest level since May and offering a potential boost to the labor market ahead of Tuesday's elections. The Labor Department reported that job openings climbed to 7.5 million from a revised 7.19 million in August. This figure represents a recovery from the recent low of 6.9 million recorded in March.

The Job Openings and Labor Turnover Survey (JOLTS) indicated that gross hiring increased while layoffs decreased during the month. Heather Long, chief economist at Navy Federal Credit Union, noted that companies are slowly increasing hiring despite high diesel and gas prices and ongoing inflation. She described the trend as an encouraging sign for the economy.

Job openings now outnumber the unemployed, a reversal from a year ago when more people were out of work than there were available positions. The largest increases occurred in professional and business services, including engineering, accounting, and temporary agency roles. Manufacturers, shipping firms, and state and local governments also posted more vacancies.

Economists caution that this trend must persist for several months to indicate real progress. Nicole Bachaud, a labor economist at ZipRecruiter, pointed out that high inflation and rising interest rates make business operations more expensive. She stated that these factors create downward pressure on hiring until inflation cools.

The data also showed a shift in worker behavior. Layoffs fell sharply to 1.64 million, the fewest since March 2025. Conversely, the number of people quitting their jobs rose to 3.37 million, the highest in about 18 months and up from 3.04 million. A rise in quits is generally viewed positively, as workers typically leave only when they have new employment lined up or feel confident they can find it.

The government will release the October jobs report on Friday. FactSet data forecasts that employers added 65,000 positions last month, an improvement from the 29,000 added in September. The unemployment rate is expected to remain at 4.2%. While 65,000 job gains might signal a struggling economy in other contexts, the current low level of job growth is sufficient to keep unemployment stable due to baby boomer retirements and reduced immigration.