U.S. job openings decreased to 7.6 million in December, down from 8.2 million in November, indicating a cooling yet stable labor market, according to the Labor Department. This figure represents a decline from 8.9 million a year prior and a peak of 12.2 million in March 2022, falling short of economists' expectations of 7.9 million.
Despite the drop in job openings, layoffs have decreased, suggesting strong job security for American workers. The number of individuals quitting their jobs has risen slightly but remains below pre-pandemic levels, reflecting diminished confidence among workers in finding better opportunities.
The decline in job openings was particularly notable in professional and business services, healthcare, and finance sectors, while there was a slight increase in the arts and recreation fields. Overall, the labor market has slowed from the rapid hiring seen in previous years, with employers adding an average of 186,000 jobs per month in 2024 compared to higher figures in earlier years.
The upcoming jobs report for January is anticipated to show a further slowdown in hiring to around 160,000 jobs added, with unemployment expected to remain low at 4.1%. Despite high interest rates imposed by the Federal Reserve to combat inflation, hiring has remained robust.
While Trump's proposed import taxes and immigration policies could reignite inflation concerns, the Fed is cautiously signaling potential rate cuts this year as inflationary pressures have eased somewhat.