US job openings increased sharply in September while layoffs fell, supporting economists' views that the labor market remained on firmer footing despite tepid employment gains during that month.

Job openings, a measure of labor demand, had risen by 333,000 to 7.523 million by the last day of September, the Labor Department's Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday. Data for August was revised slightly higher to show 7.190 million vacancies instead of the previously reported 7.079 million.

Economists polled by Reuters had forecast 7.100 million unfilled positions in September. The job openings rate rose to 4.5% from 4.3% in August. The JOLTS report has been plagued by a low response rate, which has decreased considerably from the period prior to the COVID-19 pandemic.

Economists view the labor market as continuing to be in a "low-hire, low-fire" state, and argue that strong profits as domestic demand remains resilient were keeping layoffs near historic lows. The ongoing US-Israeli war with Iran is, however, making employers hesitant to boost hiring, they said.

Hiring increased by 131,000 to 5.402 million in September. The hires rate rose to 3.4% from 3.3% in August. Layoffs and discharges decreased by 127,000 to 1.641 million, with the rate falling to 1.0% from 1.1% in August.

Nonfarm payrolls increased by 29,000 jobs in September. A Reuters survey of economists expects payrolls to have advanced by 65,000 in October. The unemployment rate is forecast to have been unchanged at 4.2%.