Additional Labor Data Paints a Mixed Picture

Revelio Labs reported 66,400 job gains in April. While this is still a modest level of hiring, it was the strongest monthly increase since last June and higher than the previous six months combined. At the same time, job openings edged down to 6.87 million in March from 6.92 million in February, remaining far below the more than 12 million openings seen in 2022. The true number of openings may be somewhat lower, since some remote positions are posted in multiple locations. New unemployment claims remain relatively low at around 200,000. However, that figure may not fully reflect labor market stress, as some displaced workers are turning to gig or freelance work instead of filing for unemployment benefits.

Meanwhile, continuing unemployment claims (which measure people still receiving benefits) remained elevated at 1.77 million, suggesting it’s taking longer for many job seekers to find new roles. Challenger, Gray & Christmas also reported 83,387 job cuts in April, up from roughly 60,000 in March. AI-related restructuring was cited as the leading reason for layoffs for the second straight month. Hiring plans also dropped 69% month over month to about 10,000.

What’s the bottom line?
While some labor market indicators have stabilized, signs of slower hiring and underlying softness remain.