US job openings decreased to 7.6 million in December, the largest drop in 14 months, according to the latest data from the Bureau of Labor Statistics. Despite this decline, hiring remained steady, and layoffs fell by 29,000, suggesting that the labor market is not slowing down rapidly.
The JOLTS report also showed a decrease in job openings for every unemployed person, with a ratio of 1.1, compared to 1.15 in November. This drop was largely driven by a decline in professional and business services, as well as healthcare and social assistance vacancies.
However, the number of unfilled positions remained above the 2019 average, indicating that labor demand remains strong relative to available supply. Economists expect the Federal Reserve to hold off on cutting interest rates until at least June.
President Donald Trump’s recent policy announcements, including tariffs on Canada, Mexico, and China, may have made businesses cautious, leading to a decrease in job openings. Financial markets do not expect a rate cut before June, despite the US central bank’s benchmark overnight interest rate remaining unchanged.
The layoffs rate remained steady at 1.1%, while hiring increased by 89,000 to 5.462 million. However, this increase was mostly seen in finance and retail sectors, with smaller companies showing weaker hiring rates. The number of people voluntarily quitting their jobs also rose only slightly, keeping the quits rate at 2.0%.
Source: https://www.reuters.com/markets/us/us-job-openings-fall-sharply-december-layoffs-low-2025-02-04