Job openings declined sharply in December, falling from 8.156 million in November to 7.6 million, well below forecasts and near afour-year low. The drop was particularly pronounced in sectors like finance, professional services, healthcare and construction.
Both the hiring rate of 3.4% and quits rate of 2% approached their lowest levels in over a decade, excluding the COVID-19 period. The reduced hiring rate poses challenges for those on unemployment in securing new roles, while the low quits rate indicates diminished confidence in the job market.
What’s the bottom line?
Job openings may be even fewer than reported. The rise in remote work has led to job listings being posted in multiple states, likely resulting in an overcount in the JOLTS data. In addition, the ratio of job openings to unemployed persons is at 1.1, a significant decrease from the peak of over 2 in 2022, which suggests some underlying weakness in the labor market.