U.S. job openings rose by 731,000 in April to 7.618 million, the largest monthly increase in five years, according to the Labor Department’s Job Openings and Labor Turnover Survey released Tuesday.

The surge was driven largely by the professional and business services sector, which accounted for roughly 91% of the gain. However, hiring fell sharply by 419,000 to 5.116 million, and resignations dropped to their lowest level in nearly six years, signaling reduced worker confidence in the jobs market.

Economists described the labor market as remaining in a “slow-hire, slow-fire” pattern. The increase in openings was viewed with some skepticism, as declines in the same sector in previous months had been revised away, raising questions about whether April’s spike will hold up in future data revisions.

The report comes against the backdrop of economic uncertainty caused by the ongoing U.S.-backed war with Iran, which has driven up energy prices and contributed to broader inflationary pressures. Analysts warned that without a clear resolution to the conflict, higher oil costs could further dampen business hiring intentions and reduce real incomes.

Layoffs remained relatively contained, falling by 192,000 to 1.692 million, helping to anchor the labor market despite weaker hiring. The upcoming May employment report is expected to show nonfarm payrolls increasing by a modest 85,000 jobs, with the unemployment rate holding steady at 4.3%.

The data underscores a resilient but cautious labor market as businesses navigate the effects of geopolitical conflict and elevated inflation.