US labour market remains resilient, job openings data shows

Employers posted 9.8 million vacancies in May despite efforts from Fed to cool labour market

A sign advertises job openings outside a business in Bensenville, Illinois. AFP

Job openings in the US dipped slightly in May but remained at a high enough level to underscore the strength of the labour market despite the Federal Reserve's aggressive interest rate increases.

Employers posted 9.8 million job openings in May, down from 10.3 million in April, the Labour Department reported on Thursday.

The report shows that job openings remain at historic levels despite efforts by the Fed to cool the labour market and inflation.

And a separate report from the ADP Research Institute showed that private employers added 497,000 jobs last month. The Labour Department is scheduled to release its jobs report for June on Friday.

But there are some signs that the Fed's rate increases are having an effect, with economic growth slowing.

And the central bank's key inflation gauge showed that prices increased by 3.8 per cent on an annual basis, though it still remains above their 2 per cent target.

The Fed paused raising interest rates last month to assess their effects on the US economy, although it suggested two more increases are likely to be issued before year's end.

Minutes released by the Fed showed that not all officials at the central bank were supportive of pausing interest rates. Some had showed support for a 25-basis-point increase, pointing to the strong labour market.

US mortgage rates climb

Meanwhile, mortgage rates jumped to their highest level since November, finance company Freddie Mac reported.

The higher rates make purchasing a home complicated for potential homebuyers who now are faced with higher prices and lower availability, with homeowners reluctant to sell.

“These high rates combined with low inventory continue to price many potential homebuyers out of the market,” said Sam Khater, chief economist at Freddie Mac.