The latest data released by the US Department of Labour (DOL) showed that the number of job vacancies rose to 8.14 million in May, exceeding market expectations of 7.96 million and breaking a downward trend that had lasted several months.

Meanwhile, April's figure was revised down from 8.059 million to 7.919 million, a new low in more than three years.

The increase in job openings in May was driven primarily by government sector vacancies, with manufacturing and healthcare industries also contributing. However, job openings in the accommodation and food services sector declined.

Despite the increase in job openings, the resignation rate remained low at 2.2 per cent, a level that is the lowest since 2020. Business hiring increased to 5.746 million, while layoffs rose, reflecting the volatile conditions in the job market.

Analysts are forecasting that non-farm payrolls will add about 195,000 new jobs in June and the unemployment rate is expected to remain at 4%. Although the JOLTS data suggests that labour demand remains healthy, it is difficult to draw firm conclusions based on a single month's data alone.

Overall, the job market is gradually cooling down and getting closer to pre-New Crown epidemic levels.

Stephen Stanley, chief U.S. economist at Santander US Capital Markets LLC, said that while the labour market has been gradually returning to normal, it is still performing healthily compared with the pre-epidemic period.

Bloomberg economist Stuart Paul believes the Federal Reserve (FED) could be expected to cut interest rates twice this year as the ratio of job openings to unemployed workers continues to fall and the labour market cools.