The US job market has shown signs of cooling, with job openings falling to 7.6 million in December. This decrease marks a change from the previous month’s 8.2 million and is also down from last year’s 8.9 million. The labor market remains healthy but at a slower pace.
Compared to economists’ expectations, job openings fell short of the 7.9 million forecasted for this time. However, the number of layoffs decreased, indicating that Americans have seen increased job security in recent months. The number of people quitting their jobs rose slightly but remained below pre-pandemic levels.
The latest data from the Labor Department’s Job Openings and Labor Turnover Summary (JOLTS) shows that professional and business services companies reduced job postings. However, some sectors such as healthcare, finance, and arts saw a slight increase in openings.
Employment has slowed down since 2021-2023 when hiring was rapid. The number of jobs added each month decreased from 251,000 in 2023 to 186,000 through November in 2024. When the January jobs report is released on Friday, it’s expected to show a slowing job growth rate.
Despite high interest rates, the job market has remained solid. The Federal Reserve raised interest rates 11 times between 2022 and 2023 to control inflation but then reduced them three times this year due to easing price pressures. However, recent progress on inflation has stalled, with consumer prices remaining above the central bank’s target of 2%.
President Donald Trump’s plans to tax imports and deport immigrant workers also pose a threat to rekindle inflation. The Federal Reserve has signaled caution in its response, expecting to cut interest rates twice this year.
Nancy Vanden Houten, lead US economist at Oxford Economics, stated that the December JOLTS report is consistent with the Fed’s view of the labor market as healthy enough to tolerate a more cautious approach to lowering rates.
Source: https://finance.yahoo.com/news/us-job-openings-fall-7-151135622.html