The US labor market has shown a stable trend, with job openings increasing to 8.098 million in November, but hiring rates declined. According to the Job Openings and Labor Turnover Survey (JOLTS) report from the Labor Department, there were 1.13 job openings for every unemployed person, up from 1.12 in October.
The vacancies-to-unemployed ratio is just below its average of 1.2 before the COVID-19 pandemic. The US central bank reduced interest rates last month for the third time since kicking off its easing cycle in September but projects fewer cuts this year.
Small businesses are driving job openings, with an increase of 273,000 in professional and business services. However, vacancies decreased by 89,000 in the information industry. Hires dropped by 125,000 to 5.269 million, mostly among small businesses with one to nine employees and those with 50 to 249 workers.
The trade deficit increased 6.2% to $78.2 billion in November, as imports rose 3.4% to a record high of $351.6 billion while exports advanced 2.7% to $273.4 billion. The US central bank has lowered its benchmark interest rate to the 4.25%-4.50% range.
Despite low layoffs and workers staying in their jobs, fears about higher tariffs have sparked uncertainty among businesses. Economists speculate that the incoming administration’s policies will influence hiring decisions.
Source: https://www.reuters.com/markets/us/us-trade-deficit-widens-november-2025-01-07