Jamie Spencer
Job openings in the U.S. fell sharply in December while hiring, voluntary quits, and layoffs remained steady, according to the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) released Tuesday.
Key Highlights from the JOLTS Report
- Job openings: 7.6 million (vs. 8 million expected), lowest since September
- Hiring: 5.46 million, little changed from November
- Quits: 3.2 million, slightly higher month-over-month
- Layoffs: 1.77 million, down 29,000 from November
- Ratio of open jobs to available workers: 1.1 to 1
Sector-Specific Declines
Several industries saw a significant reduction in available jobs:
- Professional & business services: -225,000 openings
- Private education & health services: -194,000 openings
- Financial activities: -166,000 openings
Market Reaction and Economic Outlook
Major stock indexes rose following the report, while Treasury yields were mixed. The data suggests the labor market remains relatively healthy despite the decline in openings.
This report arrives just ahead of the Bureau of Labor Statistics’ January nonfarm payrolls report, which is expected to show a gain of 169,000 jobs with the unemployment rate holding at 4.1%.
Fed’s Policy Stance
The Federal Reserve continues to monitor labor market data for signs of slack or tightness. With last week’s decision to keep the benchmark interest rate at 4.25%-4.50%, markets now expect the first rate cut no earlier than June 2025. Policymakers are also weighing the potential impact of new tariffs on U.S. trade partners.
