WASHINGTON, November 3, 2026 — U.S. job openings rose to 7.5 million in September, up from a revised 7.19 million in August, the Labor Department reported Tuesday. The figure marks the highest level since May and an increase from the March low of 6.9 million, offering a potential boost for hiring amid persistent market tightness.
Labor Market Tightness and the Hiring Picture
The Job Openings and Labor Turnover Survey (JOLTS) indicated that gross hiring rose and layoffs fell in September. Despite the increase in openings, hiring has remained sluggish for nearly three years. The number of job openings currently exceeds the number of unemployed, a sharp reversal from a year ago when more people were out of work than there were available positions. However, low “churn” in the labor market provides job security for the employed but makes it harder for job seekers to find new roles.
Wage Pressure and Monopsony
Labor market tightness measures how difficult it is for firms to find workers relative to the number of job seekers. Tight labor markets typically imply stronger wage pressures as employers compete for scarce talent. Yet employer wage-setting power, or monopsony, remains a factor. Between 2016 and 2022, the average U.S. worker earned roughly 30 percent less than the estimated value they contributed to output—a gap known as the earnings markdown. The gap narrowed to around 20 percent after 2022, reflecting the tight post-pandemic labor market. Union coverage and AI exposure in occupations are associated with lower employer wage-setting power.
Long-Term Unemployment
While job openings rose, long-term unemployment persisted. Approximately 1.9 million Americans were unemployed for at least 27 weeks in September, representing 27.1 percent of the unemployed. Long-term unemployment has increased 68 percent since 2023, rising from 1.1 million to 1.9 million people. The share of unemployed Americans out of work for at least 27 weeks has risen from 19 percent to 26 percent. Unemployment was 4.2 percent in September, and 7.1 million people were unemployed, according to the Bureau of Labor Statistics. The rate has remained within a narrow 4.1 percent to 4.3 percent range since March. Yet employers added just 29,000 jobs in September, indicating a “low-hire, low-fire” environment.
What the Numbers Mean
The September JOLTS data shows a labor market where demand for workers, as measured by job openings, is rising, but the pace of hiring remains constrained. The increase in openings to 7.5 million suggests firms are seeking more labor, yet the low level of hiring and the elevated level of long-term unemployment indicate a disconnect between available positions and those able to fill them. For the ordinary reader, the data suggests that while opportunities are growing, securing a position remains challenging, and wage growth may be moderated by persistent monopsony conditions.
7.5 million
Sources
- Labour economics
- Evaluating New LinkedIn Labor Market Tightness Indicators – Liberty Street Economics
- Research Round-Up: Time-to-Degree, Labor Market Info, and “High Performing Pell” Institutions
- Monopsony in the US labor market: Is worker power back?
- US job postings jumped sharply in September, potentially a good sign for anyone seeking employment
- Number of Americans unemployed for 6 months has surged ahead of midterms
Photo: Shixart1985 (CC BY 2.0)
