The US labor market showed a mixed bag in December, with job openings declining to their lowest level since September, but still above the Federal Reserve’s expectations of 8 million. The Bureau of Labor Statistics reported that available positions tumbled to 7.6 million, and the ratio of open jobs to available workers decreased to 1.1 to 1.
Job openings in December fell by 556,000, while hiring remained steady at 5.46 million, and quits also saw a small gain to near 3.2 million. Layoffs totaled 1.77 million for the month, down just 29,000. The decline in job openings was largely driven by professional and business services, private education and health services, and financial activities.
The news sent mixed signals about the labor market’s health, with major stock market averages rising following the report. Treasury yields were also mixed as investors digested the data. Fed officials have expressed caution about monetary policy, citing a relatively healthy labor market and the impact of interest rate cuts last year.
A January jobs report is expected to show an addition of 169,000 jobs, with the unemployment rate holding steady at 4.1%. The Federal Reserve’s benchmark borrowing rate remains steady at 4.25-4.50%, with no further reductions expected until at least June.
Source: https://www.cnbc.com/2025/02/04/job-openings-decline-sharply-in-december-to-7point6-million-below-forecast.html