U.S. jobs market perks up, but it's still not a great time to get hired

By Jeffry Bartash

Job openings increased in September

A job seeker attends a jobs fair in Florida.

Job openings in the U.S. rose in September to a four-month high and hiring also increased, signaling mild but perhaps not sustainable improvement in a sluggish U.S. labor market.

The number of job openings climbed to 7.52 million in September from 7.19 million in the prior month, the government said Tuesday. The report is released with a one-month lag.

Hiring also accelerated to a five-month high of 5.40 million from 5.27 million in the prior month.

Although the report pointed to some strengthening in the labor market, it's unlikely the improvement represents the start of a broader upturn. One-third of the increase in job openings was in state and local government, mostly in education as school resumed.

Other employment indicators show that businesses are still hesitant to hire.

Key details: Job openings rose by 104,000 in state and local government. Openings also climbed by 106,000 for white-collar professional jobs.

The only other industries to show a notable increase were manufacturing and construction, both of which have benefited from a massive boom in artificial intelligence.

New job listings had surged to a record 12.3 million in 2022 as the U.S. recovered from the pandemic, but they have been surprisingly weak for the past three years.

Perhaps the best sign of progress in the report was a big increase in the number of people who quit their jobs. More people quit when they think other jobs are available and they can increase their pay.

The number of job quitters jumped to 3.18 million in September from 2.88 million in August, topping the 3 million mark for only the second time in 2026.

The so-called quits rate for private-sector workers rose to 2.3% from 2.1% and reached the highest level since the end of 2025.

Private-sector layoffs also fell to a 19-month low of 1.56 million.

In October, the U.S. is expected to show a scanty 59,0000 increase in new jobs, economists polled by The Wall Street Journal said. The jobs report comes out Friday morning.

Big picture: It's strange U.S. labor market. Businesses aren't adding lots of jobs or getting rid of many workers.

Companies are reluctant to hire more people in part to manage their costs. High inflation has forced businesses to pay substantially more for supplies, and it's not easy to pass on costs to resistant customers.

Looking ahead: "The labor market remains tough for many," said senior U.S. economist Matthew Martin of Oxford Economics. "Employers are reticent or unwilling to let go of employees, even if they are hiring less."

Market reaction: The Dow Jones industrial average DJIA fell, but the S&P 500 SPX rose, in Tuesday trades as investors awaited the results of the 2026 congressional elections.

-Jeffry Bartash

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

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11-03-26 1156ET