US job openings increased significantly in September 2026, while layoffs dropped to their lowest level in 18 months. The latest figures suggest that the American labor market remains resilient despite slower employment growth and continued economic uncertainty.
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) also revealed a sharp increase in employee resignations. Meanwhile, the number of available positions exceeded the number of unemployed Americans, highlighting continued demand for workers.
These developments could influence the Federal Reserve’s monetary policy as policymakers balance persistent inflation against changing labor market conditions.
US Job Openings Rise to 7.52 Million in September
According to the Bureau of Labor Statistics, US job openings increased by 333,000 to 7.523 million in September, exceeding economists’ expectations.
Analysts surveyed by Reuters had anticipated approximately 7.1 million vacancies.
Additionally, August’s figures were revised upward to 7.190 million openings, compared with the previously reported 7.079 million.
The ratio of available jobs to unemployed workers climbed to 1.06 in September from 1.02 in August. This suggests that labor demand continues to exceed the number of Americans actively seeking employment.
Furthermore, the job openings rate increased to 4.5%, compared with 4.3% in the previous month.
Private Businesses and Government Drive Labor Demand
Several industries contributed to the increase in available positions.
State and local governments, excluding education, recorded approximately 104,000 additional vacancies. This represented nearly one-third of the overall monthly increase.
Meanwhile, private-sector job openings rose by 236,000, reflecting continued hiring needs across multiple industries.
Professional and business services led the expansion with 106,000 additional vacancies.
Manufacturing also recorded an increase of 54,000 openings, while construction added 36,000 vacancies. Investment in artificial intelligence infrastructure contributed to demand in construction and related activities.
Additionally, trade, transportation and utilities reported 45,000 more available positions.
However, not all sectors experienced stronger demand. Vacancies declined in financial activities, healthcare and social assistance, and leisure and hospitality.
Small businesses accounted for most of the increase in job openings. By contrast, establishments employing between 50 and 249 workers reported fewer vacancies.
US Labor Market Maintains a Low-Hire, Low-Fire Trend
Despite stronger job openings, economists continue to describe the US labor market as operating under a low-hire, low-fire environment.
This means companies remain cautious about expanding their workforce but are also reluctant to dismiss existing employees.
Healthy corporate profits and resilient domestic consumer demand have helped businesses maintain staffing levels.
However, the prolonged US-Israeli conflict with Iran has created additional uncertainty, particularly regarding inflation, energy costs and future economic conditions.
Consequently, many employers appear hesitant to accelerate recruitment.
Nonfarm payrolls increased by just 29,000 positions in September. Economists partly attributed the weak figure to calendar-related factors.
Looking ahead, a Reuters survey projected that the US economy would add approximately 65,000 jobs in October, while the unemployment rate would remain at 4.2%.
Hiring Improves While Layoffs Reach an 18-Month Low
Actual hiring also strengthened during September.
The number of new hires increased by 131,000 to 5.402 million, bringing the national hiring rate to 3.4% from 3.3% in August.
Accommodation and food services recorded a particularly strong increase, adding 158,000 hires. Construction and retail also reported notable gains.
Nevertheless, hiring declined across manufacturing, professional and business services, financial activities and several government categories.
Small and medium-sized businesses accounted for the overall improvement. In contrast, larger employers reported fewer hires.
Meanwhile, layoffs and discharges fell by 127,000 to 1.641 million, marking their lowest level since March 2025.
The layoffs rate decreased to 1.0% from 1.1% in August.
Healthcare and social assistance experienced substantial reductions in job losses. Similar improvements occurred in professional and business services, transportation, trade and utilities.
However, construction reported an increase in layoffs. Businesses employing between 10 and 49 workers also recorded more job cuts.
Overall, the figures indicate that most employers continue to prioritize workforce stability despite economic uncertainty.
Employee Resignations Jump as Worker Confidence Improves
Another important development was the increase in voluntary resignations.
The number of workers quitting their jobs rose by 321,000 to 3.365 million in September. This represented the largest monthly increase since May 2023 and the highest overall level since March 2025.
The quits rate also climbed to 2.1%, compared with 1.9% in August.
Economists often view voluntary resignations as an indicator of worker confidence. Employees are generally more willing to leave existing positions when they believe alternative opportunities are available.
Accommodation and food services, alongside construction, accounted for much of the increase.
However, some resignations may also reflect immigration enforcement measures affecting labor availability.
The National Association of Home Builders recently reported that more than one-third of surveyed builders had observed immigration enforcement activity discouraging legally employed workers from attending their jobs.
Most resignations occurred among small and medium-sized employers.
The broader increase in quits could also contribute to wage pressures if businesses must compete more aggressively to attract replacement workers.
Federal Reserve Faces Inflation and Interest Rate Challenges
The latest employment data could have important implications for the Federal Reserve.
Although job creation remains relatively modest, the combination of rising vacancies and declining layoffs suggests that the labor market is not weakening significantly.
This resilience may provide policymakers with additional flexibility to address inflation.
At its latest policy meeting, the Federal Reserve maintained its benchmark interest rate within the 3.75% to 4.00% range while acknowledging that inflation remained elevated.
Matthew Martin, senior US economist at Oxford Economics, indicated that labor market conditions remained generally solid, although unemployed workers continued to face difficulties.
He also suggested that persistent inflation could encourage the Fed to increase interest rates gradually, with potential adjustments at its December and March meetings.
Meanwhile, Ben Ayers, senior economist at Nationwide, highlighted the renewed imbalance between job vacancies and unemployed workers.
According to his assessment, this could create additional upward pressure on wages heading into 2027.
Nevertheless, Ayers expects employment growth to remain steady rather than exceptionally strong during the final months of 2026.
Businesses must continue balancing higher operating costs against resilient consumer spending and expanding artificial intelligence investment.
For now, the September JOLTS report points to a stable US labor market, with stronger labor demand, relatively limited layoffs and improving worker confidence.
However, inflation risks, geopolitical uncertainty and cautious corporate hiring could continue shaping employment conditions and Federal Reserve decisions in the months ahead.
