A "Now Hiring" sign hung quietly in the window of a Journeys shoe store in Brooklyn this June, catching the summer sun as it reflected off a pair of brand-new sneakers. For passersby, it might have looked like just another retail poster—but to economists and job seekers alike, it was a small signal of a bigger shift in the U.S. labor market.
According to new data from the Bureau of Labor Statistics, job openings rose to 7.8 million in May—marking the second consecutive month of growth and surprising analysts who had expected a modest slowdown. In contrast to earlier concerns over softening labor demand, the data suggests that employers may be shaking off months of hesitation and beginning to rehire.
For much of the year, businesses had been treading water amid uncertainty over former President Donald Trump’s tariff policy on Chinese goods. Steep tariffs and trade friction had made it difficult for companies—particularly those in manufacturing, logistics, and retail—to plan ahead. But May brought a welcome pause in hostilities, and with that, a renewed willingness to expand payrolls.
Greg Mason, the owner of a mid-sized logistics firm in North Carolina, had spent much of the spring deliberating whether to hire. His company, which provides warehousing and last-mile delivery for several industrial clients, saw demand evaporate at the end of last year as tariffs took hold. “We had pallets of parts just sitting in the warehouse,” he said. “No one was ordering, and I couldn’t justify bringing in new staff. It felt like everything was frozen.”
But in May, with signs that trade tensions were easing, Greg decided to post job ads again. “It’s not about being overly optimistic,” he explained. “It’s about doing something—anything—when the market gives you a little bit of breathing room.”
Greg’s experience is being echoed across trade-sensitive sectors. Transportation, warehousing, and manufacturing all posted notable gains in job openings last month. Economists suggest that this rebound is partly driven by what they call “present-tense decision-making”: rather than try to predict what Washington or Beijing might do next, businesses are focusing on the current climate.
"Without a clear picture of what happens once the current tariff pause ends, employers are just making decisions based on today’s conditions,” said Allison Shrivastava, an economist at the Indeed Hiring Lab.
The broader employment picture also offered reasons for cautious optimism. Layoffs declined in May, suggesting increased job security, even as overall hiring ticked down slightly. That combination—fewer firings, slower hiring—points to a market that may be stabilizing after months of turbulence.
Some labor indicators remain worrisome. Jobless claims have stayed elevated, and workforce participation still hasn’t fully recovered to pre-pandemic levels. But the fact that employers are adding positions despite that backdrop signals a surprising degree of resilience.
Even small business owners—often the most risk-averse—are dipping their toes back into the hiring pool. Lindsey Graham (no relation to the senator), who owns a cozy café in Toledo, Ohio, recently put up a handwritten “Help Wanted” sign in her front window. Like many small establishments, her shop was hit hard by supply disruptions and labor shortages. “For months, it was just me, my sister, and one part-timer trying to keep up,” she said. “Now that our coffee roaster is delivering on schedule again, I feel like we can finally afford to breathe—and maybe even hire someone.”
According to a note from Wells Fargo economists Sarah House and Nicole Cervi, the temporary détente in trade relations may have been enough to reignite confidence among small and medium-sized businesses, contributing to the unexpected increase in job openings. “Confidence is contagious,” they wrote, “and when businesses start to believe the worst may be behind them, they begin to act like it.”
Still, challenges remain. Some job categories—particularly those requiring manual labor or technical skills—remain difficult to fill, even as wages have risen. Labor shortages continue to frustrate employers across industries, from trucking to construction to healthcare.
But the trend is nonetheless encouraging. After months of hesitation, American employers appear to be shifting from defense to offense. The next question is whether this momentum will last—or whether it’s merely a temporary surge before another slowdown.
More data will arrive on Thursday with the June employment report, which will provide a clearer view of whether this spring hiring bump is the start of a sustained recovery. For now, though, for business owners like Greg Mason, the ability to post a job listing and expect real applicants is a small victory worth savoring.
“I’ve learned something these last few years,” Greg said. “You can’t wait forever for the wind to change. Sometimes, you just build your own sail.”